Apple is a global company known worldwide and many people own their products including myself and that is why I picked to invest in Apple. This company has been around for 40 years and I believe that it is still going to be a popular company in the future. In 2015 they sold 232 million iPhones, in 2014 they sold 193 million and 154 million in 2013. These numbers will continue to increase over the years. Apple doesn’t only sell iPhones but they have other products such as iPads iPods, computers, Apple Watches, Apple TV’s and many more. They will continue to grow with different products in the Electronic Equipment Industry and there was even rumor that Apple was working on an electric car that they plan to release in the future. Even though it …show more content…
This leads me to believe that Apple stock is being underpriced and it is worth more than the price that it is at now, which would give a good opportunity for someone to buy into the stock. However, looking at the previous years of Peter Lynch’s predictions for the stock prices he has predicted prices that are were too high and never reached that amount, but he has also predicted the company would be low priced and it was actually higher than his prediction. Apple is in talks about investing $1 billion dollars into Japan's SoftBank Group Corp tech fund. This is a good strategy for Apple to use because they currently have $78 billion in cash on its balance sheet that is unused. Japan's SoftBank Group Corp would be useful to Apple since they lost revenue in 2015 by nearly $9 billion. To increase their economies of scale they want to invest into Softbank’s stake for the long …show more content…
From 2014 to 2016 Apple’s has increased a substantial amount over the years Total Asset Turnover from .79 to 2.01 this means that this company is efficiently using its assets to generate sales so this increase is good. Inventory Turnover Ratio also has increased over the past few years; in 2014 the ratio for Inventory Turnover Ratio was 86.6 and for 2016 it is 101.1 which is good because this means that Apple is making more products and they are making more money. The Debt to Equity ratio is decreasing from 2014 to 2016 it had the ratios of .51 to .61 which means it’s a financially stable business and it's less risky for creditors and investors. With Days Sales Outstanding in 2014 the ratio was 57.7 and in 2016 it was 48.9. This decrease shows both liquidity and cash flows increase which is good for the company. Apple’s price to earnings ratio has stayed constant over the past few years and the market to book value as well. I feel as though Apple’s decision to invest into Softbank's fund will increase both price to earnings and market to book value. What has also stayed constant over the past years is their Profit Margin Ratio which means that Apple knows how to manage its expenses relatively to its net