Week 8 Assignment 8: Homework 8
FIN 100: Principles Of Finance
Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.)
Use the Income Statement and Balance Sheet to determine the changes in:
assets, liabilities, and equity
total revenue and net income
Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.
The company whose Annual Report I have chosen to review is Apple Inc. From their last fiscal year, Apple’s total assets increased from $321,686(million) to $375,319(million). Because there is a balance to everything their total liabilities increased considerably, jumping from $193,437(million) to $241,272(million) compared to its total assets. Apple’s shareholders’ equity also saw a marginal increase from $128,249(thousand) to $134,047(thousand). Total revenue for 2017 ($47,567(million)) has increased from 2016 ($46,666(million)) but still isn’t as much as it was in 2015 ($51,967(million)). Obviously, the same holds true for the net income there has been an increase from 2016($45,687(million)) to 2017($48,351(million)) but even with the increase, 2017 still lower than 2015 ($53,394(million)).
Looking at this from the perspective of a potential investor, I would have to look farther back to see if the 2016 decrease would be part of a trend to be prepared to counteract when it that trend or time approaches again. Other than that looking to the future and seeing the increase from 2016 to 2017 I would consider investing but again I would do my due diligence and research past quarterly reports to try and predict any trends that may result in a potential losses.