Apple’s financial health, business and finance homework help

Since , Apple’s financial health will improve because statically it has been improving year after year all while remaining innovative the company is producing quality products that consumers wants. The financial results that were posted quarterly June 27th, 2015 showed revenue of $49.6 billion and a quarterly net profit of 10.7 billion. A year ago in the third quarter the company had revenue of 37.4 billion and net profit of $7.7 billion. The revenue is increasing primarily due to the IPhone, which is a huge product for the company. Apple has a high profit high volume product with the IPhone and over the next 5 years I see the company improving but in order to do so they have to keep a competitive advantage. I personally do not see the Apple Corporation deteriorating. They have a very strong cash flow of $15 billion. They are already estimating the revenue for the fourth quarter to be between $49 billion and $51 billion.

Two actions that Apple could take in order to maximize the use of its cash flows would be to use the cash to innovate, Apple is already the innovator of technology, they have not been the first to introduce certain products but they have found ways to differentiate their products from its competitors. The second way to maximize their cash flow is to take a look at their products and see what is not selling and use that money on other products that will turn over the money more quickly. To expand on the R&D point, how much do you think the company should spend on R&D as part of their profits? Justify your answer …