Pro Forma Financial Analysis: Apple Inc.

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Financial statements, which are the records of an entity that consists of the income statement, balance sheet, cash flow statement, and Shareholders Equity. Many forms of stakeholders such as shareholders, creditors, and management use this information to make better decisions with their relationship towards the business. Apple Inc.’s is a technology company founded in 1976 that creates and sells electronics for consumers. Apple Inc.’s performance for their recent period is provided through the use of the financial statement. Apple Inc.’s Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year is produced for the projection of finances to compare with targeted returns as an estimate. A complete ratio analysis for the last fiscal year, calculation of Return On Equity (ROE) using DuPont analysis, calculation of the Economic Value Added (EVA), recommendation of stock pick, and evaluation of risk due to international concerns are present respectively. This information is used in order to determine whether the company is a good investment option to purchase their stock, or the company does not meet expectations. …show more content…

is headquartered in Cupertino, CA, and is a leader in the technology market for consumer. Apple Inc. is listed under the New York Stock Exchange as “AAPL”. Apple Inc. is known for its inventions such as the iPhone, iPod, iPad, iOS, Apple watch, Mac, along with other hardware and operating systems available. Apple has 490 retail stores within 20 countries as well as an online store available to those that can access the internet within specific regions. According to Hickman, Byrd, & McPherson (2013), “Apple Inc. aggressively protects its patents and copyrights” (p. 12.1). With the use of Apple’s resources in order to deter competition of a similar product, Apple creates an environment that best fits their financial goals as a technology