Professional Documents
Culture Documents
Apple Inc.
Apple is an American company founded on
April 1, 1976. But it is not Aprils fool joke
and has since become one of the most
successful companies worldwide. The
company started out with Steve Jobs, Steve
Wozniak, and Ronald Wayne (though he
sold his share of the company early in the
stages of Apples development).
Apple is named after Jobs countless visits
to apple orchards. He lived on a fruitarian
diet for portions of his life. This is where the
name Apple originates from. With their
inception also came a simple goal. They
wanted to make a user friendly computer.
They began in Cupertino, California and this
is where the headquarters still rests.
Their mission statement still reflects that
goal today, Apple designs Macs, the best
personal computers in the world, along with
OS X, iLife, iWork, and professional
software. Apple leads the digital music
revolution with its IPods and ITunes store.
Apple has reinvented the mobile phone with
its revolutionary IPhone and App store, and
is defining the future of mobile media and
computing devices with IPad.
Its safe to say they have a lot of confidence
in their brand. The real question is: should
you?
Microsoft (Corporation)
Microsoft is an American company founded
on April 5, 1975. They began as just Bill
Gates and Paul Allen. They believed the
world needed software that made it easier to
use computers. At the time, the
microprocessor was just invented. This
inspired Paul Allen to name their company,
Microsoft.
The company began small in Albuquerque,
New Mexico, but has expanded and now
rests in Redmond, Washington. The
companys main focus is their operating
system, Windows.
Since its inception, Microsoft has become a
leading company in America and is well
known for their computers, tablets, game
console, and Microsoft Office. However,
even with its advancement they still have the
same goal, At Microsoft our mission and
values are to help people and businesses
throughout the world realize their full
potential.
With Windows 10 on the rise and new
advancements around the corner, its easy to
see why these two are in competition. Which
one is more deserving of the attention?
Apple Inc.
Microsoft
Assets
Assets
231,839,000,000
172,384,000,000
290,479,000,000
176,223,000,000
Increase of:
58,640,000,000
Increase of:
3,849,000,000
Increasing Assets?
Increase of assets can be a positive attribute. If cash is increasing it means the company is
gaining new funds to use for future growth. However, this can be bad too. If cash is seeing
continually high numbers, without spending, the company may not be using its cash effectively.
Or in contrast, if the cash amount is dwindling this can predict company hardship. Both
companies have increasing assets (though by far Apple has outdone Microsoft) which is a good
sign of growth.
Liabilities
Liabilities
120, 292,000,000
82,600,000,000
171,124,000,000
96,140,000,000
Increase of:
50,832,000,000
Increase of:
13,540,000,000
Increasing Liabilities?
Every good company has debt but they are able to pay. Debt is okay and even better if it is
lowering overtime. A good indicator is also how assets measure to liabilities. For example, if there
are more assets than liabilities, thats a good thing. If liabilities are higher than assets, the
company may not be able to pay its bills.
Equity
Equity
Sept. 27, 2014
Sept. 26, 2015
Increase of:
89,784,000,000
80,083,000,000
Decrease of:
7,808,000,000
111,547,000,000
119,355,000,000
7,808,000,000
Source: Microsoft Annual Balance Sheet (Yahoo Finance)
Increasing Equity?
Increasing equity can also be the sign of a healthy company, but its not the end of the world if
equity decreases either. Equity increased when there is more investment and sales. It also
decreases when dividends are paid out or if there are net losses (expenses being more than sales).
Microsoft may not be in any trouble. They may have just paid out dividends.
231,839,000,000
Total Liabilities
120,292,000,000
Total Equity
111,547,000,000
Equity + Liabilities
231,839,000,000
Total Assets
172,384,000,000
Total Liabilities
82,600,000,000
Total Equity
89,784,000,000
Equity + Liabilities
172,384,000,000
Microsoft 2015
Apple 2015
Total Assets
290,479,000,000
Total Liabilities
171,124,000,000
Total Equity
119,355,000,000
Equity + Liabilities
290,479,000,000
Total Assets
176,223,000,000
Total Liabilities
96,140,000,000
Total Equity
80,083,000,000
Equity + Liabilities
176,233,000,000
(Gross) Revenue
182,795,000,000
Net Income
39,510,000,000
Apple Inc.
Microsoft
(Gross) Revenue
233,715,000,000
Net Income
53,394,000,000
93,580,000,000
Net Income
12,193,000,000
Both companies have seen an increase in revenue and their overall profit. This is a sign of growth
and increased sales. A company increasing its sales is in the green. Their profit (or net income) is
also increasing which means they are continually making back the money spent in expenses
(exceeding it) and have profit. If theres more profit, then there can be more money reinvested in
the company to improve and continue growth.
Apple Inc.
Statistics
2014
2015
23%
29%
21%
30%
52%
59%
1.08
.17
53.18
1.11
.18
59.64
32.6%
43.84%
Microsoft
Year
Profit Margin
Operating Profit
Margin
Debt Ratio
Current Ratio
Return on Assets
Inventory
Turnover
Return on
Equity
2014
2015
25%
32%
13%
19%
48%
55%
2.5
.13
10.18
2.5
.07
11.38
26.1%
13.70%
Sources
Performance Review
86,833,000,000
Net Income
22,074,000,000
Apple Inc.
Overall, Apple is progressing
wonderfully as a company and I think they
will continue to grow as strong as they have
in the years to come. Their inventory
turnover is huge and thats good. (Its a
companys ability to sell its inventory).
Microsoft
Over the course of this study, Ive seen that Apple is a major contender and more than deserving of
Though Microsoft is a bit smaller (or
the attention. As a company, they are a tank on the market and should not be ignored. They have only
a lot smaller) they have their own small
shown growth and I highly recommend them as an investing choice. Holding some of their stock for the
success. In 2014 they were booming and
long run could be one of the smartest decisions we make. They sell their inventory quickly, with high
moving strong into a new generation of
profits and returning an extra 10% to their shareholders in 1 year alone.
computers and consumers. For unknown
reasons, however, their values and strength
has diminished. The stock value has only
Microsoft is a bit of a different story. Beloved asdecreased
they are, itand
is clear
that this
a rough
one should
beiswary
of patch for
them and their stock is losing value and has been since the
end of 2014.
TheTheir
gap between
the two years is
purchasing
a share.
sales decreased
practically insurmountable and Id say this stock is a risky
one to have.
10%strong
in their profit
dramatically
butTheyve
they stilllost
show
margin and in shareholders equity. They wont go underability
as a company
to cover (and
debtswho
and knows
sell offmaybe
their theyll
even bounce back), but dont outright buy tons of Microsoft
stock. Buying stock should take heavy
inventory.
consideration and approached with caution. Focus more attention on Apple than Microsoft.