Strategic Audit Of Apple: Common Size Financial Statements Research Papers Examples

Liabilities & Shareholders' Equity

This part of the research project will analyze different aspects of the Apple’s financial outlook and determine the overall fiscal health of the company. Following are the common size balance sheet and income statement as well. In the later section various financial ratios will be calculated in order to receive a clearer picture of the situation. The abovementioned gigantic table shows common size balance sheet of the company for past five years, and the following tabular structure develop a similar income statement for last four years,

Conclusion

The company is in dire circumstances because it is facing competitive forces from all over the world, and therefore, its innovative tendencies are dying out with the passage of time. The company’s recent gearing ratio is spiking because its low strategic performance is causing the organization to appear untrustworthy in the eyes of investors, and the outstanding shares are dropping in number as well. The fewer shares are pointing out that there are less investors interested in keeping their money with the top technological innovator and inventor of the past. The liability and expense side of balance sheet and income statement is gaining on the counter-side, and therefore, the company is surviving from preying on its goodwill and economies of the scale. However, the company requires constant and effective innovation in order to ensure lacking organizational effectiveness.

References

Heracleous, L. (2013). Quantum Strategy at Apple Inc. Organizational Dynamics Vol 42(2) , 92–99.
Reid, G. C. (1996). Fast growing small entrepreneurial firms and their venture capital backers: An applied principal-agent analysis. Small Business Economics Vol 8(3) , 235-248.
Voulgaris, F., Asteriou, D., & Agiomirgianakis, G. ( 2002). Capital structure, asset utilization, profitability and growth in the Greek manufacturing sector. Applied Economics Vol 34(11) , 1379-1388.