Before investing his or her hard earned money on a company, an investor should know the particulars of any business. For example, it is important to know the solid plan for the business (Apple.Inc) and its operations. There are some business fundamentals that that an investor should be aware before investing in Apple.Inc (NASDAQ:AAPL). Here are some of the fundamentals:
The financial basics
According to Edgars report in US Security and exchange commision the financial basics means the financial part or aspects of the company. In FY ended 2017, the company’s revenues was more than $229.2 billion which represented a net growth of more than 13.6% from the previous financial year. The company’s net income stood at $ 48.4 Billion in that year also representing a growth of 6% over the year. This is a very good prospect and an indication that the company is on a growth trajectory therefore the investor can invest in the stock. The financial metrics for Apple shows an expected increase in revenue in subsequent years making it safe for an investor to invest (Benoit, 2018).
Capital return program
Apple.Inc generates cash flow that is substantial. Over the last 12 months, the company generated an impressive $58.55 billion in free cash flow or $ 11.88 per share. Under its current leadership of Tim Cook, the company pays quarterly dividends of $ 0.75 per share. This represents an annual dividend payout of $2.95 per share and a dividend yield of 1.3%. its annual dividend payout is approximately $13 Billion dollars making it an attractive company for any investor (Miller, & Maxwell, 2016).
Business break down
Finally, its important for an investor to breakdown the business the company is engaged in. Apple business segment from sales to music streams lines makes it more lucrative (Nawrocki, 2018)..
Benoit, D. (2018). iPhones and children are a toxic pair, say two big Apple investors. The Wall Street Journal, A1.
Miller, T., & Maxwell, R. (2016). Apple. In Global Media Giants (pp. 383-396). Routledge.
Nawrocki, T. (2018). The Efficiency of Investing in Shares of Innovative Companies–the Case of Investment Funds Available in the Polish Market. Zeszyty Naukowe Wyższej Szkoły Bankowej w Poznaniu, 79(2), 137-153.