1. What is Apple Company’s cash position?
For the Apple Company has a cash position which acts as its major possession for the running of most activities. The company holds most of its cash reserved and cash equivalents of about $50.5 billion and also holds in possession about $44.08 billion within the marketable securities framework. The available funds are easily convertible into cash hence the greater market position through an ample cash chest in the global market. Most of the accounts that are receivable accumulate to an amount of $14.1 billion. It stands for the overall amounts that are owned by the firms as it engages in most business operations like the cellular network activities with most retailers and wholesalers (Gazerani, 2020). Under the liabilities side, Apple’s current liabilities accumulate to about $89.7 billion which is composed of $29.1 billion accounts that are considered payable and the amount it owes other businesses of about $9.9 billion in the papers issued. The firm’s non-current liabilities amount to a total of $31.7 billion which is represented through the interest rates that are either fixed or floating at a significant rate.
2. Does the apple company reflect positive cash balances for the last three years?
Over the last three years the company has reflected negative cash balances due to a change in the capital structure that is attributed by the debt-to-equity ratios that have increased from 0.32 to 1.32 hence a negative framework for the company. The major debt sources have denied the company the ability to engage in greater deals. It has therefore affected the availability of funds since there is too much debt as compared to the equity systems hence an over-leverage level for the company (Gazerani, 2020). However, in the company’s profitability ratio reflects a positive cash balance which entails sales of about $260.17 billion and a net income of $55.25 billion hence adequate return on equity of 55.92%.
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3. What methods does the Apple Company use to ensure and maintain positive cash flows?
As for the Apple stock it engages in effective cash analysis where proper management had been applied towards the share repurchases and other relative quarterly cash dividends. For positive cash flows the company raises its market prices to help it gain ultimate sales and profits from the potential clients. It helps fuel the excess cash from the balance sheet to ensure the interests of most shareholders are put in place well enough (Zhang, 2017). The shareholder values creased enable the cash to move from the balance sheet towards those selling their ultimate shares hence positive cash flows within the company. It negotiates most of their terms and conditions with most vendors to ensure that they opt to make investments within the company.
4. What methods of short-term financing does the Apple Company use?
Apple’s short term investments during the last quarter season was about $31.368 billion and is actively linked towards the need to squeeze the profits from every sales made in the company. It therefore applies the financial strategy on maximizing its financial reserves and other relative margins (Gazerani, 2020). Apple operated at a median short term investment of about $51.713 billion within the fiscal years ranging between September 2016 and 2020. The debt-to-equity ratio enables the company to determine the ownership amount and measure the amount of debt the company uses to finance most of its operations which has increased to about 112%.
Recommendation
The Apple Company would be a good investment for potential in investors since they will make greater returns from every sales made in the goods and services. Also the products are of good quality hence it will be easier to attract more customers who will make effective purchases (Zhang, 2017). From the financial figures that the company has made in the past years having an investment will yield greater returns since it gains about $20 billion profit levels on an annual basis. The investors will therefore receive large profits and invest their shares for the wellness of the Apple Company.
References
Gazerani, N. (2020). Business Analysis of Apple Company. Doi: 10.13140/RG.2.2.19161.06246.
Zhang, Q. (2017). Research on Apple Inc’s Current Developing Conditions. Open Journal of Business and Management , 6 (01), 39.
