Case | HBS Case Collection | June 2014

Financial Policy at Apple, 2013 (A)

by Mihir A. Desai and Elizabeth A. Meyer

Abstract

By the end of 2013, Apple had $137 billion dollars in cash and marketable securities. This case explores how companies can generate such large amounts of cash and how and if they should distribute it to shareholders, especially in the face of shareholder pressure. In the process, students are asked to undertake fundamental financial analyses, including ratio analysis, a financial forecast, and a cash distribution analysis.

Keywords: Apple; Steve Jobs; forecast; Forecasting; Forecasting and Prediction; shareholder activism; share repurchase; dividends; Financial ratios; preferred shares; cash distribution; Corporate Finance; Borrowing and Debt; Financial Management; Financial Strategy; Technology Industry; Consumer Products Industry; United States; Republic of Ireland;

Language: English Format: Print 22 pages Educators

Citation:

Desai, Mihir A., and Elizabeth A. Meyer. "Financial Policy at Apple, 2013 (A)." Harvard Business School Case 214-085, June 2014.

Related Work

  1. Supplement | HBS Case Collection | June 2014

    Financial Policy at Apple, 2013 Student Supplement

    Mihir Desai and Elizabeth A. Meyer

    This is the student spreadsheet supplement to case 214-085, Financial Policy at Apple, 2013 (A).

    Keywords: Apple; Steve Jobs; forecast; Forecasting; Forecasting and Prediction; shareholder activism; share repurchase; dividends; Financial ratios; preferred shares; cash distribution; Corporate Finance; Borrowing and Debt; Financial Management; Financial Strategy; Technology Industry; Consumer Products Industry; United States; Republic of Ireland;

    Citation:

    Desai, Mihir, and Elizabeth A. Meyer. "Financial Policy at Apple, 2013 Student Supplement." Harvard Business School Spreadsheet Supplement 214-714, June 2014.  View Details
    CiteView DetailsPurchase Related

  2. Supplement | HBS Case Collection | June 2014

    Financial Policy at Apple, 2013 (B)

    Mihir Desai and Elizabeth A. Meyer

    This case is meant to accompany Financial Policy at Apple, 2013 (A) and details the results of Apple's Q2 2013 earnings call.

    Keywords: Apple; Steve Jobs; forecast; Forecasting; Forecasting and Prediction; shareholder activism; share repurchase; dividends; Financial ratios; preferred shares; cash distribution; Corporate Finance; Borrowing and Debt; Financial Management; Financial Strategy; Technology Industry; Consumer Products Industry; United States; Republic of Ireland;

    Citation:

    Desai, Mihir, and Elizabeth A. Meyer. "Financial Policy at Apple, 2013 (B)." Harvard Business School Supplement 214-094, June 2014.  View Details
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  3. Teaching Note | HBS Case Collection | October 2014

    Financial Policy at Apple, 2013 (A) and (B)

    Mihir A. Desai and Elizabeth Meyer

    This is the teaching note to HBS case 214-085: Financial Policy at Apple, 2013 (A).

    Keywords: Apple; Steve Jobs; forecast; Forecasting; Forecasting and Prediction; shareholder activism; share repurchase; dividends; Financial ratios; preferred shares; cash distribution; Corporate Finance; Borrowing and Debt; Financial Management; Financial Strategy; Technology Industry; Consumer Products Industry; United States; Republic of Ireland;

    Citation:

    Desai, Mihir A., and Elizabeth Meyer. "Financial Policy at Apple, 2013 (A) and (B)." Harvard Business School Teaching Note 215-022, October 2014.  View Details
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About the Author

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Mihir A. Desai
Mizuho Financial Group Professor of Finance
Finance
Entrepreneurial Management

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