Question

Please choose a firm from a major U.S. stock exchange -- provide a brief background of the firm than discuss its current financial position.

Then discuss possible current ramifications that the coronavirus has on its operations.

Be as specific as you can, you may not find accurate financial information, but you should find plenty of information as to what dramatic changes are taking place, and if possible, look at future cash flows and earnings.

Include stock graphs in your analysis.

Answer 1

I have taken example of Apple inc to explain about financial impact due to COVID-19. It is very much suitable as most of its component manufacturers were located in China, Europe and US. Due to serious issue because of COVID-19 all people were started working from home and all sales outlets were closed where customer comes and buys the products except online delivery system.

Impact is coming both from production side where product is manufactured in various countries were impacted due to Corona economic issue as well as sales platforms were product is sold to end customer.

Below is the extract of stock price from Google from Dec'19; downfall in below chart is due to Corona which is having impact on all markets across the world:

Advanced Charting 6M $ % VOL $350 $300 $250 $200 Sep 190 ct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 CLOSE: 242.21 DAY RANGE 240.00 +0.00 DAY LOW/HIGH 259.08 170.27 52 WEEK LOW/HIGH 327.85

Below is the 2019 year end financial results submitted sourced from Apple's investor relation hub;

Apple Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In millions, except number of shares which are reflected in thousands and per share amounts) Three Months Ended December 28, 2019 December 29, 2018 $ $ Net sales: Products Services Total net sales 79,104 12,715 91,819 73,435 10,875 84,310 Cost of sales: Products Services Total cost of sales Gross margin 52,075 4,527 56,602 35,217 48,238 4,041 52,279 32,031 Operating expenses: Research and development Selling, general and administrative Total operating expenses 4,451 5,197 9,648 3,902 4,783 8,685 Operating income Other income/expense), net Income before provision for income taxes Provision for income taxes Net income 25,569 349 25,918 3,682 22,236 23,346 560 23,906 3,941 19,965 $

Major components were sourced from below countries and all were impacted due to corona;

Where Do iPhone Components Come From? 2. China (Battery) 3. Japan (Camera, Compass, LCD Screen) 1. Germany (Accelerometer) - 4. Switzerland (Gyroscope) 5. U.S.A. (Glass screen, Wi-Fi Chip, Audio Chips)