Assignment Content

Continue your work with the company you selected in Wk 2.

Research your company’s financial reports for 2017. Apple

Complete a 2- to 3-page FAQ/Shareholder Analysis. This is a written assignment, not power point.

Evaluate economic conditions that influence company performance. Consider political, environmental, currency (money), global economics, and government influences on economic conditions.

Compare market conditions with the company’s performance for 2017. Conclude how the market conditions that year influenced the company’s performance, such as interest rates, Federal Reserve Bank monetary policy changes, or other market conditions relevant to the company you selected.

Analyze year-over-year performance from 2016 and 2017. Consider key metrics or ratios such as trailing PE ratio, forward PE ratio, price to book, return on assets, and return on equity in your conclusions.

Cite references to support your assignment.

Format your citations according to APA guidelines.

Need Help? ORDER A CUSTOM-WRITTEN PAPER NOW

Apple’s Shareholders Analysis

            Like any other organization, Apple experiences many conditions that affect organizational performance. Apple is considered one of the successful business due to its financial proceed and fast growth. Apple is faced with political, economic, governmental and environmental concerns that impact its stock. Despite the challenges, Apple has thrived in the telecommunication industry.

Political Factors

           Different political perspectives have impacted Apple decision making processes because it is an international company. International terrorism, importation laws, international relations between countries distracts Apple operations. As an American company, it is affected by trade wars (Farooq, 2019). Some countries might delay the production of Apple products to create a bad impression of the company. For instance imposes high tariffs on US products thus decreasing sales due to high costs of the product (Liu & Woo, 2018). High demand for Apple products depends on how America and china resolve to address trade taxes.

Global Economics

           Inflation and forex exchange (currency) are global factors that influence Apple performance. When the inflation rate spikes, consumer power to buy Apple products decreases due to high production and product prices (Farooq, 2019). At times Apple has been forced to buy foreign currency because the US value losses its value against other currency. By so doing, Apple products generate more revenue from the international market. When the United States currency is very strong, international operations are affected.

Environment Factors

           A huge percentage of Apple products are produced in china hence posing an environmental threat. Pollution directly increases the production cost. The company is forced to observe its regulations to avoid more environmental damage (Farooq, 2019). The decision to produce environmentally friendly products has reduced the production time. Radiation concerns and global warming interrupts Apple operations. Apple is heavily dependent on internet infrastructure which translates to high electricity bills.

Year-Over-Year Performance 2016-2017

           The economic conditions between 2016 to 2017 were bad. Unemployment was high and the stock market was greatly affected (Murphy, 2016). Nonetheless, Apple created approximately 2 million jobs in the United States. In 2017 Apple interest rate was 2.3%. During this period the disposable incomes were high favoring Apple to sell its products.

2017 compared to 2016

           Apple performance decreased (2016 ratio was 1.23 whereas the 2017 ratio was 1.24). Apple was able to pay short term debts. Apple assets and liabilities stood at 97.43 billion and increased to 259.6 billion in 2017. In 2017 Apple return of assets decreased to 13.83% from 14.31% in 2016. Therefore, Apple was less profitable in 2017. Apple 2016 price to earnings ratio was 13.39 and 17.06 in 2017. For that reason, Apple stock value was overstocked. 2016 Apple price to book ratio was 4.44, while in 2017 it was 6.02. 2016 was a progressive year for Apple, whereas in 2017 Apple made more income (Murphy, 2016).

References

Farooq, U. (2019). Apple Pestle Analysis. https://www.marketingtutor.net/Apple-pestle-analysis/

Liu, T., & Woo, W. T. (2018). Understanding the US-China trade war. China Economic Journal11(3), 319-340. https://doi.org/10.1080/17538963.2018.1516256

Murphy, M. (2016). Apple didn’t have a great 2016, but 2017 is looking to be a big one. Quartz. https://qz.com/869175/Apple-didnt-have-a-great-2016-but-2017-is-looking-to-be-a-big-one/.