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Question: I need a complete Financial Statement Analysis of the information below.

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Choose a publicly-traded corporation in which you are interested (APPLE INC.) You also need to select two top competitors of your chosen company (Samsung and HP).

Company A: APPLE INC. Company B: SAMSUNG. Company C: HP INC.

Balance Sheet:

BALANCE SHEET	APPLE	SAMSUNG	HP
Cash & Short Term Investments (2022)	$6,120M	$2,448M	$3,145M
Total Accounts Receivable (2022)	$10,325M	$7,837M	$6,891M
Inventories (2022)	$4,550M	$2,980M	$7,614M
Total Current Assets (2022)	$25,035M	$16,560M	$19,702M
Net Property, Plant & Equipment (2022)	$10,510M	$7,882M	$4,010M
Intangible Assets (2022)	$5,200M	$1,935M	$10,474M
Total Assets (2022)	$44,930M	$26,374M	$38,494M
Short Term Debt (2022)	$3,000M	$1,500M	$458M
Total Current Liabilities (2022)	$15,800M	$9,000M	$26,189M
Long-Term Debt (2022)	$9,500M	$5,000M	$11,671M
Total Liabilities (2022)	$27,500M	$16,500M	$41,519M
Total Shareholders' Equity (2022)	$17,430M	$9,874M	($3,025M)

Observations:

• Asset Structure:
  • COMPANY A has the highest total assets, followed by COMPANY C and COMPANY B.
  • Intangible assets are significant for all companies, with COMPANY C having the highest.
• Liquidity:
  • COMPANY A has the highest cash and short-term investments.
  • COMPANY C has the lowest cash and short-term investments among the three.
• Debt:
  • COMPANY B has the lowest total debt, both short-term and long-term.
  • COMPANY A and COMPANY C have higher debt levels, with COMPANY C having the highest.
• Equity:
  • COMPANY A has the highest shareholders' equity.
  • COMPANY B and COMPANY C also have positive equity, but COMPANY C has a negative equity value.

Conclusion:

• COMPANY A has a strong balance sheet with high liquidity, significant assets, and positive equity.
• COMPANY B is also in a solid financial position with lower debt and strong equity.
• COMPANY C faces challenges with higher debt levels and negative equity, indicating potential financial difficulties.

Income Statement:

INCOME STATEMENT	APPLE	SAMSUNG	HP
Sales/Revenue (2022)	$65,000M	$80,000M	$62,033M
Cost of Goods Sold (2022)	$45,000M	$56,000M	$50,004M
Gross Income (2022)	$20,000M	$24,000M	$11,259M
SG&A Expense (2022)	$8,000M	$9,000M	$6,916M
EBIT (2022)	$12,000M	$15,000M	$4,343M
Interest Expense (2022)	$1,000M	$800M	$359M
Pretax Income (2022)	$11,000M	$14,200M	$4,324M
Income Tax (2022)	$3,500M	$4,500M	$1,192M
Net Income (2022)	$7,500M	$9,700M	$3,132M
EPS (Basic) (2022)	$7.23	$9.01	$2.98
EBITDA (2022)	$13,500M	$16,500M	$5,113M

Observations:

• Revenue:
  • COMPANY B has the highest revenue, followed by COMPANY A and COMPANY C.
• Gross Profit:
  • COMPANY B has the highest gross income, followed by COMPANY A and COMPANY C.
• Operating Expenses:
  • COMPANY B also has higher operating expenses (SG&A) compared to the other two companies.
• Operating Profit (EBIT):
  • COMPANY B has the highest EBIT, followed by COMPANY A and COMPANY C.
• Interest Expense:
  • COMPANY C has the lowest interest expense, while COMPANY B has the highest.
• Net Income:
  • COMPANY B has the highest net income, followed by COMPANY A and COMPANY C.
• Earnings Per Share (EPS):
  • COMPANY B has the highest EPS, followed by COMPANY A and COMPANY C.
• EBITDA:
  • COMPANY B has the highest EBITDA, followed by COMPANY A and COMPANY C.

Conclusion:

• COMPANY B generally outperforms in terms of revenue, profitability, and earnings per share.
• COMPANY A follows closely behind, showing strong financial performance.
• COMPANY C lags behind in terms of revenue and profitability, facing challenges with lower net income and earnings per share.

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