Apple Cash Flow, Article Review Example

The article “Apple Cash Flow Article Analysis was very informative concerning the revenues earned by Apple. There is no argument with the article presenting the numbers: Apple cash flows were approximately 47 billion and in 2014 approximately 43 billion. The article provided all the position cash flow numbers and excellent future analysis of profitable. However, the article should have included some business ratios. The ratios provide a clearer picture concerning the outlook of Apple such as liquidity ratios that give a picture of working capital not just net profit. There is no doubt that Apple is profitable with lots of cash flow on hand, however the financial ratios help understand how much of that cash flow is spent on the operations of the business. The business can be appear to be cash heavy on the front end but how much of the available cash flow is being spent.

The article discussed the competition such as Samsung who has a less expensive product which brings the point of technology changing and evolving. The article did not discuss how Apply was going to make the adjustment with the new market demands from the baby boomers that was faster, bigger and more innovative smartphones. However, the article did a good job sharing that Apple’s strength for cash flow infusion is the Apple newly launched iPhone 6 and iPhone 6 Plus models. Apple is expecting these new iPhones to pay heavy dividends well into the future. Apple has several other products that will contribute to the cash flow such as smart watches, Apple Pay and Apple Watch with Apple Watch and Apple Pay, respectively.

The Apple stock would be a great investment because Apple allows the company to allocate large sums of money to capital distributions. This means Apple is able to keep more money after paying for capital expenditures.  Apple can be very generous with dividend and buybacks which result in the stock holders receiving a bigger slice of the cash flow. Overall the Apple Cash flow article was very informative with excellent information for current investors and existing stockholders.