Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
APPLE INC.
Submitted by:
Jafarien Balindong
Emmanuel Neri
John Yana
Submitted to:
APPLE INC.
Non-current assets:
Marketable securities 170,799 194,714
Property, plant and equipment, net 41,304 33,783
Other non-current assets 22,283 18,177
Total non-current assets 234,386 246,674
Total assets $ 365,725 $ 375,319
Non-current liabilities:
Deferred revenue 2,797 2,836
Term debt 93,735 97,207
Other non-current liabilities 45,180 40,415
Total non-current liabilities 141,712 140,458
Total liabilities 258,578 241,272
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001
par value: 12,600,000 shares authorized; 4,754,986
and 5,126,201 shares issued and outstanding,
respectively 40,201 35,867
Retained earnings 70,400 98,330
Accumulate other comprehensive income/(loss) (3,454) (150)
Total shareholders’ equity 107,147 134,047
Total liabilities and shareholders’ equity $ 365,725 $ 375,319
APPLE INC.
Shareholders’ equity:
Common stock and additional paid-in capital, $0.00001
par value: 12,600,000 shares authorized; 4,754,986
and 5,126,201 shares issued and outstanding,
respectively 40,201 35,867
Retained earnings 70,400 98,330
Accumulated other comprehensive income/(loss) (3,454) (150)
Total shareholders’ equity 107,147 134,047
Total liabilities and shareholders’ equity $ 365,725 $ 375,319
The table below shows the composition of the share capital of Apple Inc.
Authorized share capital is the number of stock units (shares) that a company can
issue as stated in its articles of incorporation. It is usually not fully used by management
to leave room for future issuance of additional stock in case the company needs to raise
capital quickly. As shown in the table above, Apple Inc. has 12,600,000 authorized share
capital as of September 29, 2018.
Issued share capital is the amount of authorized share capital that the company
has issued to its shareholders in order to raise capital. As of September 29, 2018, Apple
Inc. has 4,754,986 shares issued which is clearly stated in its balance sheet.
Outstanding Shares
Aside from share capital, other line items found in the company’s shareholders’
equity are retained earnings and accumulated other comprehensive income/(loss).
Retained Earnings
Retained earnings is the amount of net income left over for the business after it
has paid out dividends to its shareholders. Apple has $ 98,330 (in millions) retained
earnings last September 30, 2017 which recently decreased to $ 70,400 (in millions) last
September 29, 2018. The decreased in Apple’s retained earnings is caused by the
repurchase of its common stock amounting to $ 73,056 (in millions), shares withheld for
employee taxes $ 948 (in millions) and dividends declared of $ 13,735 (in millions).
Numbers are expressed in millions except for shares which are express in
thousands.
The net income of Apple Inc. as of September 29, 2018 increased from $ 48,351
in 2017 to $59,531. This shows that the strategy of the company which leverages on the
company’s capability in delivering innovative products to its consumers have succeed.
Especially with the launching of its Iphone X series in 2018 which is very in trend in the
market. The company’s declared dividend in 2018 is $13,735 compared to 2017 declared
dividends of $12,803 resulting in a $932 increase.
In 2018, the company’s line item for changes in shareholders’ equity included a
decrease in accumulated other comprehensive income/(loss) of $278 from the cumulative
effect of change in accounting principle which was balanced out by an increase in retained
earnings by the same amount. The share-based compensation of the company increased
by $534 in 2018 and the net of shares withheld for employees taxes which is deducted
from its retained earnings is increased by $367.
One of the factors that affected the decrease in the retained earnings is the
repurchase of common stock. During 2018, the Company repurchased 405.5 million
shares of its common stock for $73.1 billion in connection with two separate share
repurchase programs. Of the $73.1 billion, $44.0 billion was repurchased under the
Company’s previous share repurchase program of up to $210 billion, thereby completing
that program. On May 1, 2018, the Company announced the Board of Directors had
authorized a new program to repurchase up to $100 billion of the Company’s common
stock. The remaining $29.0 billion repurchased during 2018 was in connection with the
new share repurchase program.
Are they violating any laws on the use and level of their items in the equity?
Are their plans on capital in line with the current level as shown in the
statements?
Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
for the fiscal year ended September 29, 2018. Retrieved from
http://www.annualreports.com/HostedData/AnnualReports/PDF/NASDAQ_AAPL
_2018.pdf