# Stock Analysis

FIN 534

Ganduulga Shuree

Instructor: Thomas Alexander

Strayer University – Arlington Campus

2012

Table of Content

Introduction …………………………………………………………………………... 3 Methodology…………………………………………………………………………… 3 Descriptive Statistics and Financial Analysis ……………………………………….. 4 Analysis of Stock Price ………………………………………………………………... 5 Financial Statement Analysis …………………………………………………………. 9 Ratio Analysis …………………………………………………………………………... 10 Risk Analysis …………………………………………………………………………… 10-11 Conclusion ……………………………………………………………………………… 11 Appendix I,II,III ……………………………………………………………………….. 12-19

Introduction

Overall, Apple Inc. is pile of cash, great innovative products, and steady management. Apple has been a great investment with no downside as most of the analysts say. The organization is healthy in terms of management, finance and creativity. On IT field they are far beyond than their competitive and there are still more room to expand in the future. In this assignment I have chosen Apple Inc. to analyze its stock rate and financial statements. The numerical data (APPENDIX I) reflects to the Apple’s stock rate on NYSE from January 18-th to March 2-nd. Data used for this analysis is collected from Yahoo Finance and all the graphs, tables and analytical works are done on Microsoft Excel 2007 by using the Open, High, Low, Close rate of the stock. By researching and evaluating past (2 months) and current data allows me to have proximate idea about the stock trend and would help me to gain informed predictions. Apple Inc.’s business model is completely phenomenon and it might be the only preeminent IT company in the world. Therefore, it was interesting to study how their stock rate fluctuates.

Methodology

This section of my analysis includes descriptive statistics, charts, tables, correlation analysis, ration analysis and financial statement analysis during the period of which the data is collected. Moreover, I’ve tried to align the numerical data to the practical events and consequences that I’ve been studying during the period, which might help to make better evaluation. Descriptive Statistics and Financial Analysis

From January 18-th to March 2-nd the stock has been growing constantly from 427USD to 544USD (average), and the difference between the mean and median for this period is relatively low which is a good indication. There was not any significant decrease. Even the standard deviation is on average of 37, compared to the average mean this number looks good as well. The approximate difference between the maximum and minimum rate is around 80 (dollar) points per share, which tells us how much Apple’s return on investment was in the past 2 months. Apple, Column "Open"| Apple, Column "High"| Apple, Column "Low"| | | | | | |

Mean| 480.29| Mean| 480.75767| Mean| 476.673438|

Median| 475.63| Median| 473.27| Median| 475.13|

Standard Deviation| 38.32393643| Standard Deviation| 37.191318| Standard Deviation| 37.618627| Sample Variance| 1468.724103| Sample Variance| 1383.1941| Sample Variance| 1415.1611| Skewness| 0.137640071| Skewness| 0.0548797| Skewness| 0.09507864| Range| 125.5| Range| 122.51| Range| 122.97|

Minimum| 422.67| Minimum| 425.1| Minimum| 419.55|

Maximum| 548.17| Maximum| 547.61| Maximum| 542.52|

Count| 32| Count| 30| Count| 32|

Coefficient of Analysis| 7.979| Coefficient of Analysis| 7.736| Coefficient of Analysis| 7.892| | | | | | |

Apple, Column "Close"| Apple, Column "Average"| Apple, Column "Volume"| | | | | | |

Mean| 481.6909375| Mean| 480.89594| Mean| 18543503.1| Median| 484.925| Median| 480.61375| Median| 15912800| Standard Deviation| 39.24257558| Standard Deviation| 38.584986| Standard Deviation| 9934834.66| Sample Variance| 1539.979738| Sample Variance| 1488.8012| Sample Variance| 9.8701E+13| Skewness| 0.027206124...

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