Question

Management’s Discussion & Analysis of apple

Answer 1

Let us first understand the term Management's Discussion and Analysis, Management discussion and analysis (MD&A) is a section of a public company's annual report or quarterly filing. The MD&A addresses the company’s performance. In this section, the company’s management and executives, also known as the C-suite, present an analysis of the company’s performance with qualitative and quantitative measures.

APPLE now trades at a price to earnings ratio of 35.1, compared with its 52-week high of 40.9, while Amazon.com Inc trades at a P/E of 94.9, compared with its 52-week high of 152. Microsoft trades at a trailing P/E of 36, down from its 52-week high of 40.2, while Facebook trades at a P/E of 34.9, down from its 52-week high of 38.8. The Company has historically experienced higher net sales in its first quarter compared to other quarters in its fiscal year due in part to seasonal holiday demand. Additionally, new product and service introductions can significantly impact net sales, cost of sales and operating expenses. The timing of product introductions can also impact the Company's net sales to its indirect distribution channels as these channels are filled with new inventory followin a product launch, and channel inventory of an older product often declines as the launch of a newer product approaches. Net sales can also be affected when consumers and distributors anticipate a product introduction. Apple announced financial results for its fiscal 2019 fourth quarter ended September 28, 2019. The Company posted quarterly revenue of $64 billion, an increase of 2 percent from the year-ago quarter, and quarterly earnings per diluted share of $3.03, up 4 percent. International sales accounted for 60 percent of the quarter’s revenue. Apple announced financial results for its fiscal 2020 second quarter ended March 28, 2020. The Company posted quarterly revenue of $58.3 billion, an increase of 1 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.55, up 4 percent. International sales accounted for 62 percent of the quarter’s revenue.