Question

Based on actual dollars, discuss Apple Inc performance compared to the prior year. 2017,2019,2018 from the company's balance sheet. Explain how you can tell whether the company is performing better or worse, and highlight at least three items from the income statement that justify your assessment.

Explain any changes or growth in the marketplace that have contributed to the Apple Inc performance.

Answer 1

For Solution to this question we need to check the company Yearly Filing provided in the Link

https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019319000119/a10-k20199282019.htm#sD628584EE6B55393A4E35023D14120AE

As per this Yearly Report we can analyze how the company is performing and what are the changes and growths can be seen.

The Comparitive study of three years we can see there is increase in Net Sales up by 16% from 2017 to 2018, Net Profit up by 23% from 2017 to 2018, but when compared to 2018 to 2019 there is decline in Net Sale and Net profit by (2%) and (7%), respectively.

The Company’s financial performance is subject to risks associated with changes in the value of the U.S. dollar relative to local currencies.

Conversely, a strengthening of foreign currencies relative to the U.S. dollar, while generally beneficial to the Company’s foreign currency–denominated sales and earnings, could cause the Company to reduce international pricing and incur losses on its foreign currency derivative instruments, thereby limiting the benefit. Additionally, strengthening of foreign currencies may increase the Company’s cost of product components denominated in those currencies, thus adversely affecting gross margins.

The Company uses derivative instruments, such as foreign currency forward and option contracts, to hedge certain exposures to fluctuations in foreign currency exchange rates. The use of such hedging activities may not be effective to offset any, or more than a portion, of the adverse financial effects of unfavorable movements in foreign exchange rates over the limited time the hedges are in place.

The following table shows net sales by category for 2019, 2018 and 2017 (dollars in millions):

	2019		Change		2018		Change		2017
Net sales by category:
iPhone (1)	$	142,381			(14	)%		$	164,888			18	%		$	139,337
Mac (1)	25,740			2	%		25,198			(1	)%		25,569
iPad (1)	21,280			16	%		18,380			(2	)%		18,802
Wearables, Home and Accessories (1)(2)	24,482			41	%		17,381			36	%		12,826
Services (3)	46,291			16	%		39,748			22	%		32,700
Total net sales	$	260,174			(2	)%		$	265,595			16	%		$	229,234

This shows Co's Performance among the period of three years.

As per changes and growth strategy applied by Co, changesand growth into R&D where The year-over-year growth in R&D expense in 2019 was driven primarily by increases in headcount-related expenses and The year-over-year growth in selling, general and administrative expense in 2019 was driven primarily by increases in headcount-related expenses and higher spending on marketing and advertising and infrastructure-related costs.