what companies doAPPLE’S I-POPPING RESULTS
In July 2014, Apple announced financial results for
its fiscal 2014 third quarter ended 28 June 2014. The
company posted quarterly revenue of $37.4 billion
and quarterly net profit of $7.7 billion, or $1.28 per
diluted share. In the same quarter a year earlier, Apple
registered revenue of $35.3 billion and net profit of
$6.9 billion. Gross margin for the 2014 quarter was
39.4%, compared to 36.9% in the year-ago quarter.
International sales accounted for 59% of the quarter’s
revenue. Stories in the popular press tend to focus on
the success of Apple’s products. However, financial
managers behind the scenes at Apple play a number
of crucial roles in driving the success of the business.
For example, before the iPhone 6’s launch in 2014,
financial experts at Apple evaluated the potential
market for such a device – an upgrade to the iPhone
5 – estimated the cost of producing it, and calculated
the unit volume that the company would have to
achieve to earn a satisfactory rate of return. Becausecomponents of the iPhone 6 and other Apple
devices are made in different countries, financial
managers in Apple’s US-based treasury department
developed a plan to manage the risks that Apple
would confront when making transactions in foreign
currencies. In this chapter, we explain how financial
specialists interact with experts in fields as diverse as
engineering, marketing, communications and law to
help companies create wealth for their shareholders.
We describe the types of activities that occupy
financial managers day to day, and highlight some of
the most promising career opportunities for students
who major in finance. The work that financial analysts
do is intellectually challenging as well as economically
rewarding. We hope our overview of the field piques
your interest and inspires you to learn more.
Source: ‘Apple reports third quarter results’. https://www.apple.com/
au/pr/library/2014/07/22Apple-Reports-Third-Quarter-Results.html.
Accessed 9 December 2015.Bring your learning to life with interactive learning, study, and exam preparation tools that support the printed
textbook. CourseMate includes an integrated eBook, videos and quizzes, flashcards and more.THE SCOPE OF CORPORATE
FINANCE
1-1 The role of corporate finance in business
1-2 Corporate finance essentials
1-3 Legal forms of business organisation
1-4 The corporate financial manager’s goals
Express