Expert answer:What are the sustainable growth rates for your sub
Solved by verified expert:Use this spreadsheet for the information needed to complete this assignment.Complete the following:Using the company’s financial statements, calculate and evaluate the firm’s sustainable growth rate (SGR) for the last 3 years, and summarize your findings in your paper. Be sure to address the following:What are the sustainable growth rates for your subject company over the period that you studied?What are the consequences faced by firms that grow at a rate that is not consistent with their sustainable rate?If the firm grew at a rate above or below the SGR, how might it finance its excessive growth or reward its stockholders for the underperformance?
finc225_unit_4_and_5_ip_aapl_data_for_students__1_.xlsx
Unformatted Attachment Preview
APPLE INC (AAPL) INCOME STATEMENT
APPLE INC (AAPL) CashFlowFlag INCOME ST
Fiscal year ends in September. USD in millions except per share data.
9/24/2016
Revenue
Cost of revenue
Gross profit
$
$
$
215,639
131,376
84,263
Operating expenses
Research and development
Sales, General and administrative
Total operating expenses
Operating income
$
$
$
$
10,045
14,194
24,239
60,024
Interest Expense
Other income (expense)
Income before taxes
Provision for income taxes
Net income from continuing operations
Net income
Net income available to common shareholders
$
$
$
$
$
$
$
1,456
2,804
61,372
15,685
45,687
45,687
45,687
INC (AAPL) CashFlowFlag INCOME STATEMENT
9/26/2015
$
$
$
9/27/2014
233,715 $
140,089 $
93,626 $
9/28/2013
182,795 $
112,258 $
70,537 $
170,910
106,606
64,304
$
$
$
$
8,067
14,329
22,396
71,230
$
$
$
$
6,041
11,993
18,034
52,503
$
$
$
$
4,475
10,830
15,305
48,999
$
$
$
$
$
$
$
733
2,018
72,515
19,121
53,394
53,394
53,394
$
$
$
$
$
$
$
384
1,364
53,483
13,973
39,510
39,510
39,510
$
$
$
$
$
$
$
136
1,292
50,155
13,118
37,037
37,037
37,037
APPLE INC (AAPL) BALANCE SHEET
Fiscal year ends in September. USD in millions except per share data.
9/24/2016
Assets
Current assets
Cash
Cash and cash equivalents
Short-term investments
Total cash
Receivables
Inventories
Deferred income taxes
Other current assets
Total current assets
$
$
$
$
$
$
$
$
20,484
46,671
67,155
15,754
2,132
21,828
106,869
Non-current assets
Property, plant and equipment
Gross property, plant and equipment
Accumulated Depreciation
Net property, plant and equipment
Equity and other investments
Goodwill
Intangible assets
Other long-term assets
Total non-current assets
$
$
$
$
$
$
$
$
61,245
(34,235)
27,010
170,430
5,414
3,206
8,757
214,817
Total assets
$
321,686
Liabilities and stockholders’ equity
Liabilities
Current liabilities
Short-term debt
Accounts payable
Taxes payable
Accrued liabilities
Deferred revenues
Other current liabilities
Total current liabilities
$
$
$
$
$
$
$
11,605
37,294
22,027
8,080
79,006
Non-current liabilities
Long-term debt
Deferred taxes liabilities
Deferred revenues
Other long-term liabilities
Total non-current liabilities
$
$
$
$
$
75,427
26,019
2,930
10,055
114,431
Total liabilities
$
193,437
Stockholders’ equity
Common stock
Additional paid-in capital
Retained earnings
Accumulated other comprehensive income
Total stockholders’ equity
$
$
$
$
$
31,251
96,364
634
128,249
Total liabilities and stockholders’ equity
$
321,686
9/26/2015
9/27/2014
9/28/2013
$
$
$
$
$
$
$
$
21,120
20,481
41,601
16,849
2,349
5,546
23,033
89,378
$
$
$
$
$
$
$
$
13,844
11,233
25,077
17,460
2,111
4,318
19,565
68,531
$
$
$
$
$
$
$
$
14,259
26,287
40,546
13,102
1,764
3,453
14,421
73,286
$
$
$
$
$
$
$
$
49,257
(26,786)
22,471
164,065
5,116
3,893
5,556
201,101
$
$
$
$
$
$
$
$
39,015
(18,391)
20,624
130,162
4,616
4,142
3,764
163,308
$
$
$
$
$
$
$
$
28,519
(11,922)
16,597
106,215
1,577
4,179
5,146
133,714
$
290,479 $
231,839 $
207,000
$
$
$
$
$
$
$
10,999
35,490
25,181
8,940
80,610
$
$
$
$
$
$
$
6,308
30,196
1,209
7,689
9,548
8,498
63,448
$
$
$
$
$
$
$
22,367
1,200
5,217
7,435
7,439
43,658
$
$
$
$
$
53,463
24,062
3,624
9,365
90,514
$
$
$
$
$
28,987
20,259
3,031
4,567
56,844
$
$
$
$
$
16,960
16,489
2,625
3,719
39,793
$
171,124 $
120,292 $
$
$
$
$
$
27,416
92,284
(345)
119,355
23,313
87,152
1,082
111,547
$
290,479 $
$
$
$
$
$
$
$
$
$
$
231,839 $
83,451
19,764
104,256
(471)
123,549
207,000
APPLE INC (AAPL) Statement of CASH FLOW
Fiscal year ends in September. USD in millions except per share data.
Cash Flows From Operating Activities
Net income
Depreciation & amortization
Deferred income taxes
Stock based compensation
Accounts receivable
Inventory
Accounts payable
Other working capital
Other non-cash items
Net cash provided by operating activities
9/24/2016
$
$
$
$
$
$
$
$
45,687
10,505
4,938
4,210
1,095
217
1,791
(2,619)
$
65,824
Cash Flows From Investing Activities
Investments in property, plant, and equipment
Acquisitions, net
Purchases of investments
Sales/Maturities of investments
Purchases of intangibles
Other investing activities
Net cash used for investing activities
$
$
$
$
$
$
$
(12,734)
(297)
(143,816)
111,794
(814)
(110)
(45,977)
Cash Flows From Financing Activities
Debt issued
Debt repayment
Common stock issued
Common stock repurchased
Dividend paid
Other financing activities
Net cash provided by (used for) financing activities
$
$
$
$
$
$
(2,500)
495
(29,722)
(12,150)
23,394
(20,483)
Net change in cash
Cash at beginning of period
Cash at end of period
$
$
$
(636)
21,120
20,484
Free Cash Flow
Operating cash flow
Capital expenditure
Free cash flow
$
$
$
65,824
(13,548)
52,276
9/26/2015
9/27/2014
$
$
$
$
$
$
$
$
53,394
11,257
1,382
3,586
611
(238)
5,400
5,874
$
81,266 $
$
$
$
$
$
$
$
(11,247)
(343)
(166,402)
121,985
(241)
(26)
(56,274)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
543
(35,253)
(11,561)
28,555
(17,716)
$
$
$
$
$
39,510
7,946
2,347
2,863
(4,232)
(76)
5,938
5,417
9/28/2013
$
$
$
$
$
$
$
$
59,713 $
(9,571)
(3,765)
(217,128)
208,111
(242)
16
(22,579)
$
$
$
$
$
$
$
18,266 $
730
(45,000)
(11,126)
(419)
(37,549)
$
$
$
$
$
37,037
6,757
1,141
2,253
(2,172)
(973)
2,340
7,283
53,666
(8,165)
(496)
(148,489)
124,447
(911)
(160)
(33,774)
16,896
530
(22,860)
(10,564)
(381)
(16,379)
$
$
$
7,276 $
13,844 $
21,120 $
(415) $
14,259 $
13,844 $
3,513
10,746
14,259
$
$
$
81,266 $
(11,488) $
69,778 $
59,713 $
(9,813) $
49,900 $
53,666
(9,076)
44,590
Average # of Shares Outstanding (in millions)
9/24/2016
9/24/2015
9/24/2014
5,336
5579
5866
9/24/2015
9/24/2014
Stock price
9/24/2016
$112.71
$114.71
$100.75
…
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