Is Apple Slowly Rotting Away?

E = Equity to Debt Ratio Is Strong

The debt-to-equity ratio for Apple is perfect. The same can be said for the balance sheet. Regardless of what types of upgrades or innovations are being planned, this is important. It’s extremely rare to find this kind of quality debt management in today’s world. Research In Motion (NASDAQ:RIMM) shows similar strength, but comparing these two companies is like comparing Joe Montana to Bernie Kosar. It’s not fair.   

Debt-To-Equity

Cash

Long-Term Debt

AAPL

0.00

$29.13 Billion

$0

HPQ

1.25

$11.30 Billion

$21.79 Billion

RIMM

0.00

$2.73 Billion

$0

 

T = Technicals on the Stock Chart Are Mixed

It feels strange to write that technical on the stock chart are mixed considering Apple has been such a big winner over the past eight years. Apple has dominated Hewlett-Packard (NYSE:HPQ) and Research In Motion when it comes to stock performance over the past three years. If you’re wondering about Google (NASDAQ:GOOG), Apple has dominated that competition as well over the past three years. However, that’s more of a future competition.

1 Month

Year-To-Date

1 Year

3 Year

AAPL

-3.70%

-0.97%

25.87%

152.00%

HPQ

10.52%

6.25%

-41.02%

-69.49%

RIMM

0.50%

0.67%

-22.10%

-81.37%

 

At $527.00, Apple is currently trading below all its averages.       

50-Day SMA

555.67

100-Day SMA

608.57

200-Day SMA

599.27

 

E = Earnings Have Been Excellent

What do you expect? This is Apple.

2008

2009

2010

2011

2012

Revenue ($)in billions

37.49

42.90

65.22

108.25

156.51

Diluted EPS ($)

6.78

9.08

15.15

27.68

44.15

 

When we look at last quarter on a YoY basis, we see an increase in revenue and earnings.

9/2011

12/2011

3/2012

6/2012

9/2012

Revenue ($)in billions

28.27

46.33

39.19

35.02

35.97

Diluted EPS ($)

7.06

13.87

12.30

9.32

8.66