Why is it Important to Read Annual Reports? ft. Apple

In this short video, I'll delve into the significance of reading annual reports and how they can provide valuable insights into a company and it's performance. As an example, we'll explore Apple Inc.'s annual report and highlight key information that may be easily overlooked.

Apple is a renowned technology company that specializes in designing, manufacturing, and marketing a wide range of products, including smartphones, personal computers, tablets, wearables, and accessories. One crucial aspect highlighted in the report is the order in which Apple lists its products. At first glance, it might seem arbitrary, but it actually provides valuable insights into their sales performance. Apple starts with smartphones, followed by computers, and then tablets. This order signifies that the sales of iPhones surpass those of Mac computers, which, in turn, exceed the sales of iPads, and so forth. This simple arrangement reveals the relative popularity and demand for each product category.

Another significant detail found in the annual report is the mention of Apple's fiscal year, which is a 52 or 53 week period ending on the last Saturday of September. The inclusion of this information may seem inconsequential, but it holds valuable implications. When a fiscal year contains 53 weeks instead of the usual 52, it creates a difference of one additional week for financial reporting purposes. This seemingly small adjustment can have a substantial impact on the company's revenue and profits to the extent of 2 to 3% - which is quite a bit for a company that consistently experiences 10% annual growth. This seemingly minor variation translates into a significant financial impact, underscoring the importance of paying attention to such details.

To conclude - if you neglect to read and analyze a company's annual reports, you are missing out on a wealth of important information. Annual reports provide a comprehensive overview of a company's financial health, performance, and strategic direction. They contain valuable data such as balance sheets, income statements, and cash flow statements that can help investors, shareholders, and even curious individuals gain a deeper understanding of a company's operations.

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Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented

[zhyarjalal]

What i understood through my whole study and searches that investing in public companies(stocks) is:
step1-read and analyze company annual report.
step2-check the intrinsic value of stock, is it undervalue 20% or more.
if it’s, then don’t need to worry.

Is there other thing that I will be need it to invest ...if yes, what is that?

[zhyarjalal]

If I can’t, or I don’t’ want to waste my time by analyzing or studying annual report, is there someone(employee, accountant, financial unit or etc…) that I can pay it for analyzing and reading the report of company that I want to invest in?

[neerajgeethey]

Can you give your insights on seliing tata motors and adani Thanks in advance

[renoll]

Apple makes tons of money through accessories, but they always add it at the end. Any idea why? Smartwatches, airpods, stupid cables also add to their balance sheet.🫡