This Chart Takes a Closer Look at Apple’s Balance Sheet
Jonathon Brown — February 22, 2013 — Tech
One look at Apple’s balance sheet and you quickly realize what a massive firm it’s become. This infographic looks at Apple’s massive revenues and breaks down where the company spends its money.
The infographic comes from David Sawers of Master-Business-Administration.com. Last year, Apple broke its own earning records going from $108 billion in net sales in 2011 to over $156 billion in 2012. Where did the company put the money?
In 2011, more of the operating costs went towards R&D, with a smaller percentage going to selling, general and administrative costs. However, by 2012 those figures had flipped. They also spent 94% more in 2012 than 2011 on data centers.
It’s interesting to note that Apple reported record earnings in 2012, yet the stock went down upon the news being released.
The infographic comes from David Sawers of Master-Business-Administration.com. Last year, Apple broke its own earning records going from $108 billion in net sales in 2011 to over $156 billion in 2012. Where did the company put the money?
In 2011, more of the operating costs went towards R&D, with a smaller percentage going to selling, general and administrative costs. However, by 2012 those figures had flipped. They also spent 94% more in 2012 than 2011 on data centers.
It’s interesting to note that Apple reported record earnings in 2012, yet the stock went down upon the news being released.
Trend Themes
1. Apple's Revenue Growth - Apple has continuously broken its own earning records, indicating significant growth in revenues and opportunities for revenue diversification.
2. R&D and Investment Priorities - The shift in Apple's spending priorities towards data centers suggests potential disruptive innovation opportunities in cloud computing and big data analysis.
3. Stock Market Performance Disconnection - Despite positive earnings, Apple's stock market performance can create opportunities for the challenge of balancing stakeholder expectations.
Industry Implications
1. Technology - Opportunities in cloud computing and big data analytics through the significant investment Apple is placing in data centers.
2. Finance - Given the disconnection between Apple's stock market performance and record earnings, there may be opportunities to innovate novel metrics to assess the diverse stakeholder value derived from a company's performance.
3. Business Administration - Opportunities for organizations in revenue diversification as shown by Apple's shift in investment priorities from R&D to data centers.
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