Final level summary analysis

Vertical Analysis - Apple

Income Statement

Period Ending IN MILLIONS Forecast, 2020 September 28,2019 September 29, 2018 September 30, 2017 September 24, 2016 September 26, 2015

Total Revenue ($ 266,295.00) 100.00% $260,174.00 100.00% $265,595.00 100.00% $229,234.00 100.00% $215,639.00 100.00% $233,715.00 100.00%

Cost of Revenue $165,102.90 62.00% ($ 161,782.00) 62.18% $163,756.00 61.66% $141,048.00 61.53% $131,376.00 60.92% $140,089.00 59.94%

Gross Profit $98,529.15 37.00% $98,392.00 37.82% $101,839.00 38.34% $88,186.00 38.47% $84,263.00 39.08% $93,626.00 40.06%

Operating Expenses

Research and development $15,977.70 6.00% $16,217.00 6.23% $14,236.00 5.36% $11,581.00 5.05% $10,045.00 4.66% $8,067.00 3.45%

Selling, general and administrative $18,640.65 7.00% $18,245.00 7.01% $16,705.00 6.29% $15,261.00 6.66% $14,194.00 6.58% $14,329.00 6.13%

Total Operating Expenses $34,618.35 13.00% $34,462.00 13.25% $30,941.00 11.65% $26,842.00 11.71% $24,239.00 11.24% $22,396.00 9.58%

Operating Income or Loss $66,573.75 25.00% $63,930.00 24.57% $70,898.00 26.69% $61,344.00 26.76% $60,024.00 27.84% $71,230.00 30.48%

Income from Continuing Operations

Other income/(expense), net $2,662.95 1.00% $1,807.00 0.69% $2,005.00 0.75% $2,745.00 1.20% $1,348.00 0.63% $1,285.00 0.55%

Income before provision for income taxes $66,573.75 25.00% $65,737.00 25.27% $72,903.00 27.45% $64,089.00 27.96% $61,372.00 28.46% $72,515.00 31.03%

Provision for income taxes $10,651.80 4.00% $10,481.00 4.03% $13,372.00 5.03% $15,738.00 6.87% $15,685.00 7.27% $19,121.00 8.18%

Net Income From Continuing Ops $58,584.90 22.00% $57,063.00 21.93% $61,536.00 23.17% $51,096.00 22.29% $47,035.00 21.81% $54,679.00 23.40%

Net Income $55,921.95 21.00% $55,256.00 21.24% $59,531.00 22.41% $48,351.00 21.09% $45,687.00 21.19% $ 53 394,00 23.00%

Gross margin: Went down and flat lined, management has not found a way to be more efficient(the percentage tell us how much of every dollar of sale makes it after covering cost of goods sold). Compared to previous years this is a bad trend, compared to the industry as a whole, which is 33.34%, Apple is doing good. (We want to see margins increase...)

Cost of Revenue %: Apple is not finding ways to produce the product cheaper per dollar of sales. We want to see margins decrease… Operating income or loss: Net income: