Question

The case provides the multiple years of financial information for Apple, along with similar financial information for three of Apple's competitors.

Perform a financial analysis using analytical methods that you feel are most relevant for Apple's future success. Your analysis should focus on key ratios, trends, and a brief comparison with Samsung, BlackBerry, and Nokia.

What recommendation would you make to Jessica Grant? Should Apple stock be sold or retained?

Apple Financials - in 1,000,000
	2013	2012	2011	2010	2009
Net Sales	170,910	156,508	108,249	65,225	36,537
Cost of Sales	106,606	87,846	64,431	39,541	23,397
Gross Margin	64,304	68,662	43,818	25,684	13,140
R&D Expense	4,475	3,381	2,429	1,782	1,333
Net Income	37,037	41,733	25,922	14,013	5,704
Total Shareholders' Equity	123,549	118,210	76,615	47,791	27,832
AR, net	13,102	10,930	5,369	5,510	3,361
AP	22,367	21,175	14,632	12,015	5,601
Inventories	1,764	791	776	1,051	455
Land & Buildings	3,309	2,439	2,059	1,471	955
Cash equivalents	146,761	121,251	81,570	51,011	33,992
Total Assets	207,000	176,064	116,371	75,183	53,851
Samsung Financials - in 1,000,000
	2013	2012	2011	2010	2009
Net Sales	217,462	188,351	142,403	137,905	117,821
Cost of Sales	130,934	118,621	96,785	91,562	81,756
Gross Margin	86,528	69,730	45,618	46,343	36,065
R&D Expense	-	-	8,613	8,115	6,384
Net Income	28,978	22,333	11,853	14,400	8,436
Total Shareholders' Equity	142,649	113,777	87,896	79,685	63,131
AR, net	23,761	22,348	18,885	17,081	15,400
AP	1,002	1,092	884	957	7,117
Inventories	18,195	16,622	13,564	11,919	8,504
Land & Buildings	71,789	64,142	53,546	47,236	37,648
Cash equivalents	57,751	39,972	25,979	22,759	19,336
Total Assets	203,562	169,589	134,315	119,764	96,954
BlackBerry Financials - in 1,000,000
	2013	2012	2011	2010	2009
Net Sales	6,813	11,073	18,435	19,907	14,953
Cost of Sales	6,856	7,639	11,856	11,082	8,369
Gross Margin	(43)	3,434	6,579	8,825	6,584
R&D Expense	1,286	1,509	1,559	1,351	965
Net Income	(5,873)	(646)	1,164	3,411	2,457
Total Shareholders' Equity	3,625	9,460	10,100	8,938	7,603
AR, net	972	2,353	3,062	3,955	2,594
AP	474	1,064	744	832	616
Inventories	244	603	1,027	618	622
Land & Buildings	942	2,395	2,748	2,504	1,957
Cash equivalents	2,529	2,654	1,774	2,121	1,911
Total Assets	7,552	13,165	13,731	12,875	10,204
Nokia Financials - in 1,000,000
	2013	2012	2011	2010	2009
Net Sales	17,497	39,773	50,004	56,809	59,040
Cost of Sales	10,138	28,715	35,363	39,655	39,933
Gross Margin	7,359	11,058	14,641	17,154	19,107
R&D Expense	3,606	6,303	7,259	7,847	8,512
Net Income	(1,017)	(4,994)	(1,925)	1,797	375
Total Shareholders' Equity	9,169	12,452	18,000	21,723	21,247
AR, net	3,994	7,316	9,288	10,131	11,497
AP	2,536	5,792	7,155	8,165	7,131
Inventories	1,107	2,027	3,014	3,377	2,687
Land & Buildings	779	1,886	2,383	2,615	2,690
Cash equivalents	5,061	4,618	2,531	2,611	1,645
Total Assets	34,681	39,474	46,829	52,361	51,483