Apple business analysis

10/24/20262 min read

Apple is a $5trillion market cap company, 2nd largest company in the world in terms of market cap after Nvidia. Apple has a PE of 39.

Global Sales Volume market share

Apple 19%
Samsung 19%
Xiaomi 14%
Vivo 8%
Oppo 8%
Others 32%

Revenue market share of Apple is whopping 50%

All figures are approximate so that we can remember the figures.All figures are in $ billion.

Sales
Product $310 billion
Services $110bn
Total sales $420bn

Sales Products wise
Iphone $210
Mac $35
Ipad $30
Wearables, home $35
Services $110

Total sales $420
Iphone constitutes 50% of sales

Sales -Geography mix

Americas $180
EU $110
China $65
Japan $30
Rest of Asia $35
Total sales $420bn

Xiaomi sales $75bn

10 year sales CAGR 8%
10 year diluted eps CAGR 15%
Diluted eps ( earnings per share) cagr is not solely due to profits growth, it is also attributed to stock repurchases/ buyback

Gross margins 47% has improved from 44% 2 years back.
Xiaomi 22%

gross profits= sales - cost of goods sold
gross margins= gross profits/ sales in %

R&D cost $35bn, 8% of sales
Xiaomi 8%

SG&A ( selling , general and administrative costs), also known as operating expenses $27bn
6% of sales

operating income $130bn
operating margin 32%
Xiaomi 11%

net income $110
net margin 27%
Xiaomi net income $7
net margin 9%

ROE 150%
Xiaomi 16%

Cashflow

CFO ( Cashflow from operations) $110
capex $13
FCF $97
Dividends paid $15
repurchase of stock $90

Balance sheet

cash $35
investments $95
total cash+ investments ~$130bn
total assets $360

receivables $40
inventory $6
payables $70

cash conversion cycle= receivables+inventory- payables= -$24
negative cash conversion cycle means no cash is consumed for working capital,extra cash from payables is available at disposal

deferred revenue $9
debt $100
equity $74
debt equity ratio 1.35

fixed assets $50
fixed asset turns 6x ( fixed asset turns = fixed asset/ sales)

All below figures in $ millions.

Apple business analysis

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