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Apple's Economic Performance, Characterized By High Growth, Essay

Apple's economic performance, characterized by high growth, is not infinitely sustainable -- nothing is on a finite planet - but the company can sustain economic success for a very long time. The company's investment returns are very strong. The ROE is 45.58% and the ROA is 29.3%. Both of these figures are around the industry averages. Both of these figures are above the 5-year averages, indicating that Apple has been able to improve its operating performance in the past five years. The company, even over the five-year time horizon, performs roughly in line with its industry peers. Over the past three years, Apple's performance has improved significantly, and this was on a base of very high performance. The company's income has increased from $42.9 billion in FY2009 to $108.2 billion in FY2011. The net...

This means that not only has the company improved revenues, but it has improved its net margin as well, taking it from 19.19% to 23.9%.
Apple's balance sheet is equally impressive, and shows tremendous strength. At the end of FY 2011, Apple has $25 billion in cash, and a current ratio of 1.6. Three years ago, Apple had $23.464 billion in cash and a current ratio of 2.74. The company has not had any long-term debt on its books at any point in the past three years. This tells us that Apple has excellent balance sheet strength. Its accounts receivable has increased rapidly over the past three years and that has driven down the current ratio, but the company still has enough cash to cover its payables in their…

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MSN Moneycentral: Apple (2012). Retrieved March 23, 2012 from http://investing.money.msn.com/investments/key-ratios?symbol=AAPL
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