By 2008, it had increased by 314.30% relative to 2004. Compared to the previous year, the growth was of 44.71%.
The final row of the table deals with the net cash provisions used by the investing operations. These do not reveal a trend, increasing in some years and decreasing throughout others. They however show that Apple has been active in seizing investment opportunities, and that, while some project have returned a significant return on investment, in other cases, the benefits have yet to materialize. In 2008 as compared to 2007, the cash provisions used by the investment operations met an increase of 152.04%. This is the single sign in the financial analysis which may suggest that Apple should not invest any more for the time being, but strive to generate a return on their already existent projects.
Aside the financial resources used to finance new investments, all the other financial highlights reveal a constant and sustained ascendant trend. Through the lenses of financial highlights, the Cupertino-based organization seems strong and proves its past managerial abilities to identify and take on the most profitable investment opportunities. The final decision on whether to further invest at this moment or not cannot however be made without an analysis of the Apple financial ratios. The table below reveals some of the most relevant rations for Apple and the industry average.
Apple 2008
Apple 2007
Apple 2006
Industry Average (2008)
Quick Ratio
Current Ratio
Gross Profit Margin
Operating Margin
Pretax Margin
Net Margin
Inventory Turnover
Asset Turnover
The Quick Ratio and the Current Ratio measure the financial strength of an organization in comparison to the industry's average. Except for 2008 compared to 2007, the QR has registered steady growth. The CR constantly grew. Both variables are superior to the industry average, meaning that Apple possesses sufficient liquidities to honour its short-term debts.
The Gross Profit Margin is also revealing an ascendant trend and values superior to the industry's average. This profitability ratio shows that Apple is a strong organization which still has sufficient money left from its revenues, once it deducts its incurred costs. The Operating Margin is yet another tool used to measure profitability. The increasing values over the past years and the superiority...
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