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Profile - Apple Corporation
Consolidated P&L Statement
Earnings Per Gross Margin for each of the last three fiscal years are as follows (in millions, except percentages):
September 29, 2007 September 30, 2006 September 24, 2005
Net sales . . . . . . . . . . . . . . . . . $24,006 $19,315 $13,931
Cost of sales . . . . . . . . . . . . . . . 15,852 13,717 9,889
Gross margin . . . . . . . . . . . . . $ 8,154 $ 5,598 $ 4,042
Gross margin percentage . . . . . 34.0% 29.0% 29.0%
Gross margin percentage of 34.0% in 2007 increased significantly from 29.0% in 2006. The primary drivers of this increase were more favorable costs on certain commodity components, including NAND flash memory and DRAM memory, higher overall revenue that provided for more leverage on fixed production costs and a higher percentage of revenue from the Company’s direct sales channels.
Liquidity and Capital Resources
Cash, equivalents, investments . $15,386 $10,110 $8,261
Accounts receivable, net . . . . . . . . . $ 1,637 $ 1,252 $ 895
Inventory . . . . . . . . . . . . . . . . . . . . . $ 346 $ 270 $ 165
Working capital . . . . . . . . . . . . . . . . $12,657 $ 8,066 $6,813
Annual operating cash flow . . . . . . . $ 5,470 $ 2,220 $2,535
As of September 29, 2007, the Company had $15.4 billion in cash, cash equivalents, and short-term investments, an increase of $5.3 billion over the same balance at the end of September 30, 2006.