What type of accounting method does Apple use?

What type of accounting method does Apple use?

Apple Inc., along with other companies like Cisco and other companies show their earnings in non-GAAP (generally accepted accounting principles) figures, as they are believed to reflect their earnings better.

How does Apple finance its assets?

Equity represents ownership in a company and is calculated by finding the sum of the common stock and retained earnings, less the amount of treasury shares. Apple has roughly 4.57 billion shares outstanding. Apple has been extremely successful with its capital structure by leveraging debt and increasing equity.

What is Apple’s balance sheet?

Balance Sheet Components The total of its assets is equal to the sum of its shareholders’ equity plus its liabilities. In the case of Apple, as of September 30, 2019, this consisted of $338.52 billion on the assets side, total liabilities of $248.03 billion, and total shareholders’ equity of $90.49 billion.

What is non-GAAP?

Non-GAAP earnings are an alternative accounting method used to measure the earnings of a company. These pro forma figures, which exclude “one-time” transactions, can sometimes provide a more accurate measure of a company’s financial performance from direct business operations.

What inventory method does Apple Inc use?

Apple’s operated at median inventory method of 5 from fiscal years ending September 2017 to 2021.

Is cash accounting a GAAP?

Cash basis accounting is an accounting system that recognizes revenues and expenses only when cash is exchanged. Cash basis accounting is not acceptable under the generally Acceptable Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS).

What does Apple’s finance department do?

The finance dept. at Apple manages Apple’s funds and reports. The Marketing Department is in charge of increasing the appeal of Apple’s products to a wide range of consumers and is essentially the advertising branch of the company.

What is Apple’s marketing strategy?

Apple focuses on their UVP (unique value proposition), which is beautiful design that works right out of the box with ever-smaller packaging. It’s a marketing strategy that gets juice throughout social media and is very much a competitive advantage for Apple and its market share.

What are Apple’s assets?

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Apple Annual Total Assets (Millions of US $)
2020	$323,888
2019	$338,516
2018	$365,725
2017	$375,319

What is Apple’s fixed assets?

Apple’s latest twelve months fixed asset turnover is 7.7x. Apple’s fixed asset turnover for fiscal years ending September 2017 to 2021 averaged 7.1x. Apple’s operated at median fixed asset turnover of 7.1x from fiscal years ending September 2017 to 2021.

What is the difference between IFRS and GAAP?

The primary difference between the two systems is that GAAP is rules-based and IFRS is principles-based. Consequently, the theoretical framework and principles of the IFRS leave more room for interpretation and may often require lengthy disclosures on financial statements.

Is EBITDA a good measure of cash flow?

Cash flow is related to a broad measure of cash generated by any company or firm. EBITDA is simply a limited measure of operating income before the deduction of Interest, Taxes, Depreciation and Amortisation. Cash flow is better than EBITDA in determining the overall health of a company or a firm.

Which costing method does Apple use to value its products?

Apple Inc. uses the activity-based costing method to value its products. The method of activity based costing method that Apple Company uses is activity based management. ABC provides the management with the necessary information that it uses for its decision making and planning.

How does the Apple Company manage its operations?

The management of Apple Company uses the operation to identify the main steps in the manufacturing process. It then classifies all the in groups depending on the hierarchy of their costs. The next step is the finding the total sum of all the costs.

What type of products does Apple sell in the communications equipment industry?

Apple markets two types of products in the Communications Equipment industry. For sake of simplicity let us call them Technology Standard product and Technology Custom Product.

What is the cost structure of the Apple Company?

The cost structure of the Apple Company does not include the Engineering and development (R&D), and administrative costs. This are termed as fixed costs hence not allocated for production of the product. The company has a “clock cycle” which times every worker, these ensure each and every worker spends same time in their work place (Drury, 2006 ) .