Financial Performance Analysis and Evaluation of Apple Inc. between 1st October 2019 to 30th September 2022

Abstract

The main purpose of this study was to analyse and evaluate the financial performance of Apple Inc. between 1stOctober 2029 to 30th September 2022. This study has adopted a desktop methodology to analyze and evaluate the financial performance of Apple Inc. between 1st October 2019 to 30th September 2022. The GP margin of Apple increased from 38% to 41% in 2021 and 43% in 2022. On the other hand, Samsung’s GP margin increased from39% in 2020 to 40% in 2021 and declined to 37% in 2022. Apple has achieved high GP margins in two different ways; increased revenue and reduced cost of sales. The current ratio of Apple lay at 1.36 in 2020, declined to1.36, and declined further to 0.88 in 2022. On the other hand, the current ratio of Samsung was higher compared to Apple where in 2020 lay at 2.62, declined to 2.48, and increased again to 2.79. The performance of Apple and Samsung in terms of meeting their short-term obligations as they fall due was influenced by significant fluctuations in current assets and current liabilities. Apple is healthier in terms of long-term solvency compared to Samsung due to different types of long-term liabilities secured during the period under review. Apple indicates an effective use of its assets and manages liabilities in the short term compared to Samsung during the period between 2019 to 2022. However, Apple needs to be careful about the period it takes to pay off the debts of suppliers by maintaining a good relationship with suppliers. The agreements with suppliers which are at commercially reasonable terms need to be maintained in the long term.