Source: Apple Infographic by Amigobulls
- Apple is the largest and most valuable corporate, based on market capitalization.
- Apple value potential can be fathomed by breaking down the numbers in its financials.
- Apple’s wealth creating potential is a major reason we rate the stock highly in our Apple stock analysis.
With a market capitalization of $374 billion, the value of Exxon Mobil (NYSE:XOM) exceeds the GDP of 152 countries. If Exxon Mobil was a country and its market cap was its GDP, Exxon Mobil would be the 33rd largest country on Planet earth. Do these facts make it difficult to comprehend the size of Exxon Mobil? Well, if you thought these numbers are getting big, then how about Apple (NASDAQ:AAPL)? Just for a comparison, Apple market cap exceeds that of Exxon Mobil by a whopping 106%. If you thought Exxon Mobil was large, Apple is monstrous in size. Apple is by far the biggest and most valuable corporate on Planet Earth. As a country, Apple would be the 20th largest (by GDP) in the world if market cap equaled its GDP.
There is a reason we think Apple is an immensely valuable company, something reflected in our Apple stock analysis. Apple’s value potential becomes clear once we break down the numbers. So how about breaking down the numbers and understanding this tech giant.
Apple revenue in calendar year 2014 came in at a whopping $199.8 billion. In other words Apple generated $6335 every second, 24 hours for 365 days of the year. Mind boggling?? Well Apple’s best came in the three months ending December 2014, when the company averaged revenue collection of $9384 every second.
Apple set a record when it reported a quarterly profit of $18 billion net profits. This was an all-time record in corporate history. For comparison, Apple’s record quarterly net profit equals the debt of bankrupt ‘city of Detroit.’ Is Apple having problems with music rights? Well, Apple could buy the global music industry for $15 billion and still save some loose change, enough to buy every US citizen a $10 goodie.
For the entire year of 2014, Apple generated $44.5 billion in net profits. With $1410 flowing to its bottom line every second throughout 2014, Apple's cash reserves swelled to $178 billion at the end of December 2014.
Things get larger as we move on to Apple's cash on hand. At a massive $178 billion, Apple’s Cash balance exceeds the market cap of Amazon, the most overvalued e-commerce company on our planet. Apple could gift a $24 iTunes gift card to every person alive on this planet. How about announcing a one-time bonus of $1.8 million for each of Apple’s 98000 employees? Apple would still be left with $1.6 billion in its cash reserves.
A Break Down Of iPhone Numbers
Let’s take a sneak peek at numbers of Apple’s fastest selling products, i.e. iPhones. So let’s start with that! Apple sold an astonishing 74.5 million iPhones in the three months ending December 2014. That boils down to an average of more than 9 iPhones sold every second. At an average price of $687, iPhones generated, on average, $6441 revenue for Apple per second.
A Second On Apple’s Clock!
Let’s define one second on Apple’s clock in the last quarter of calendar 2014. Every second meant that Apple:
- Sold 9 iPhones.
- Generated $9384 in revenue.
- Added $2267 to its Net profits.
- Added $2857 to its cash balance.
- Generated free cash flow of $3837.
That’s a huge amount of value/wealth created every second. Apple’s huge value potential is one big driver of our long term bullish outlook on the stock, which is reflected in Apple stock analysis.