Please discuss and explain Apple\'s Inc. cash flow. Apple Inc. (AAPL) -NMS Watch
ID: 2655028 • Letter: P
Question
Please discuss and explain Apple's Inc. cash flow.
Apple Inc. (AAPL)
-NMS
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115.96 0.81(0.70%) Aug 14, 4:00PM EDT
After Hours : 116.14 0.18 (0.16%) Aug 14, 7:59PM EDT
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Cash Flow
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View: Annual Data | Quarterly Data
All numbers in thousands
Period Ending
Jun 27, 2015
Mar 28, 2015
Dec 27, 2014
Sep 27, 2014
Net Income
10,677,000
13,569,000
18,024,000
8,467,000
Operating Activities, Cash Flows Provided By or Used In
Depreciation
3,084,000
2,479,000
2,575,000
1,969,000
Adjustments To Net Income
1,797,000
609,000
3,085,000
(45,000)
Changes In Accounts Receivables
(1,743,000)
11,812,000
(2,757,000)
(10,252,000)
Changes In Liabilities
981,000
(13,371,000)
14,615,000
14,121,000
Changes In Inventories
354,000
(113,000)
(172,000)
(246,000)
Changes In Other Operating Activities
(162,000)
4,096,000
(1,648,000)
(764,000)
Total Cash Flow From Operating Activities
14,988,000
19,081,000
33,722,000
13,250,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures
(2,043,000)
(2,369,000)
(3,217,000)
(3,826,000)
Investments
(9,245,000)
(19,786,000)
(17,942,000)
9,707,000
Other Cash flows from Investing Activities
(115,000)
(176,000)
(6,000)
(2,884,000)
Total Cash Flows From Investing Activities
(11,403,000)
(22,331,000)
(21,165,000)
2,997,000
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid
(3,053,000)
(2,743,000)
(2,801,000)
(2,829,000)
Sale Purchase of Stock
(9,985,000)
(6,741,000)
(4,950,000)
(16,705,000)
Net Borrowings
10,680,000
7,748,000
1,076,000
4,296,000
Other Cash Flows from Financing Activities
(724,000)
(96,000)
(512,000)
(319,000)
Total Cash Flows From Financing Activities
(2,755,000)
(1,739,000)
(6,923,000)
(15,380,000)
Effect Of Exchange Rate Changes
-
-
-
-
Change In Cash and Cash Equivalents
830,000
(4,989,000)
5,634,000
867,000
Cash Flow
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Explanation / Answer
Cash Flow from Operating Activities:
The company's highest cash flow from its core business operations was during the second quarter. The lowest was during the first quarter. Since, the net income for the second quarter is the highest, we can conclude that the company made its highest sales during this quarter.
________
Cash Flow from Investing Activities:
From the information provided in the table, it can be concluded that the company invested heavily during second and third quarter resulting in negative cash flow from investing activities. The only quarter in which the company was able to generate a positive cash flow from investing activities was during the first quarter which can be attributed to amount realized from investments.
________
Cash Flow from Financing Activities:
The company had negative cash from financing activities throughout the year (as evident from the information available in the table). However, it had the lowest negative cash flow in the third quarter because of higher borrowings when compared to the previous two quarters. The maximum cash outflow from financing activities occurred during the first quarter on account of purchase of common stock.
________
Total Change In Cash and Cash Equivalents:
The company was able to generate maximum cash from all the activities combined during the second quarter. It is because of high value of cash flow from operating activities during this quarter. There is a negative change in cash and cash equivalents for the third quarter because of heavy investments made by the company, low cash flow from operations and negative cash flow from investing activities.