APPLE MONEY MACHINE

APPLE Inc (NASDAQ: AAPL) is a money machine.

The technology company once again beats historical record when announced that fiscal year 2015, which ends in September, achieved a net profit of 53.394 million dollars (48,500 million euros).

This figure, which represents an increase of 35% over the previous year, is the highest achieved by the company in its 38 years of life, never before a listed company had made so much money in a year.

Never before he had won a listed company 53.394 million dollars in one year. How does she do it Apple? With more income and tight control of spending by Luca Maestri, Chief Financial Officer.

Spray every record is the result of continued success and increasing its selling product: the iPhone. The mobile phone provides more than 66% of sales and is the backbone that supports the income of the company headed by Tim Cook today.

Apple grows in revenue, almost 28%, thanks to which it has sold more units (especially products with more margin) and higher prices. The company is able to make the cost of these sales increased at a slower pace (24.7%) and the fixed component of just invariable same. Thus, the gross margin further grows revenues (32%), reaching a very high heights in a so competitive market as technological.

The company carries out strict control of operating expenses, which consume only 23% gross margin and grow back less than operating income, causing the profit increase more and more as it approaches the bottom of the account results (35% operating result and net profit 35.14%).

The results nourish the balance of Apple, whose assets rub 300.000 million. 70% of this amount is in cash (cash and cash equivalents), which generates additional revenue through charging interest (at an average rate of 1.49% in 2015). The assets of the company amply support its obligations, even taking into account the low debt (just over 55,000 million).

Behind these financial statements is Luca Maestri, Apple vice president and chief financial officer, reporting directly to Cook, the CEO. Maestri, born in Rome in 1963, is responsible for accounting, business support, financial planning, internal audit and taxes. He is responsable for mergers and acquisitions

Former CFO of Xerox and Nokia, in Apple applies what had learned throughout his career, in which he had an outstanding weight General Motors. Maestri worked for twenty years in the US automaker and was CFO for Europe, among other charges.

Apple has distributed cash among investment funds in the money market and pension funds. Also in US Treasuries, corporate bonds and debt securities of various public administrations, among others. The maturity of these securities is usually between the short term and the long-term (one to five years).

Apple relies on the issuance of short-term debt to finance movements as the payment of dividends to shareholders or repurchase capital. Resorting to this pathway has a lower cost to the company US repatriate liquidity is distributed in other subsidiaries outside its home market. Apple gets 35% of its revenue from the US, compared with 65% from abroad.

The company explains in its report that has a total exposure in commercial paper issues totaling 8,500 million dollars by the end of 2015, by which pays an average interest rate of 0.14 percent. These securities have maturities of less than nine months.
The company expects to continue to rely on debt markets in both the US and abroad, to finance part of its plans to buy back equity and dividend payment before March 2017.

Read more:

http://investor.apple.com/

November 3, 2015 | Categories: Uncategorized | Tags: AAPL, Apple, Luca Maestri, MACHINE, MONEY, Tim Cook | 9 Comments