Financial statement analysis and common stock valuation

Analysis of Revenues

• Revenues as Reported

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently Apple Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Apple Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Apple Inc. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Income Statement

The income statement (statement of earnings) reports on the performance of Apple Inc., the result of its operating activities.

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

Liabilities and stockholders’ equity components shown as percentage of total liabilities and stockholders’ equity.

Balance Sheet: Liabilities and Stockholders’ Equity
Quarterly Data

The liabilities and stockholders’ equity reports major classes and amounts of external claims on assets and owners’ capital contributions, and other internally generated sources of capital.

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Apple Inc., the result of its operating activities.

Enterprise Value to FCFF (EV/FCFF)

Free cash flow to the firm is the cash flow available to the Apple Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.

• Free Cash Flow to The Firm (FCFF)
• Interest Paid, Net of Tax
• EV to FCFF Ratio, Current
• EV to FCFF Ratio, Historical

Analysis of Geographic Areas

Apple Inc. operates in 3 regions: U.S.; China (includes Hong Kong and Taiwan); and Other countries.

• Area Asset Turnover
• Net sales
• Long-lived assets

Analysis of Reportable Segments

Apple Inc. operates in 5 segments: Americas; Europe; Greater China; Japan; and Rest of Asia Pacific.

• Segment Profit Margin
• Net sales
• Operating income

Analysis of Solvency Ratios

Examines Apple Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage
• Interest Coverage
• Fixed Charge Coverage

Analysis of Solvency Ratios
Quarterly Data

Examines Apple Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Capital
• Debt to Assets
• Financial Leverage