Based on Apple's 2019 financial statements, will Apple's financial health improve or deteriorate over the next...

Based on Apple's 2019 financial statements, will Apple's financial health improve or deteriorate over the next five years? What actions can Apple Inc take to maximize the use of its cash flows

Expert Solution

Apple recorded huge operating cash flow of $26.7 billion in last quarter of December, 2018. During, last quarter, an all-time high EPS (Earning Per Share) is also generated of $4.18 billion and distributed $13 billion to shareholders in form of dividend and share repurchase. Apple is still trying to target a cash neutral position over the time.
As per latest financial statement of year, 2019, operating cash flow was $37.8 billion in first quarter of March, 2019. and EPS is also $2.46 generated till the end of first quarter of march, 2019. Therefore, the performance of apple is progressive in nature.
Based on above, we can conclude that Apple will perform better in next five years and will fulfill the requirement of all stakeholders.
As per annual financial statement of 2018, revenue from iPhone declined by 15% from previous year. therefore, Apple has to do something innovative in iPhone to increase the revenue for investors and other stakeholders.

ekkarill92 answered 2 years ago

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