How good is a company’s chief executive officer at investing your money most efficiently? This is an important question for long-term investors. It may underline the difference between a steady long-term performer and a flash in the pan.
Tim Cook’s tenure as Apple’s CEO has been nothing short of breathtaking when measured by the company’s financial performance. Apple is not one of the fastest-growing companies when measured by sales or earnings — it is too big for that. But its excellent stock performance has reflected Cook’s ability to deploy invested capital with improving efficiency. Cook has also been a market trendsetter in other important ways.
Apple’s commitment can be experienced by anyone who calls the company for customer service. It is easy to get through to a well-trained representative who will solve your problem. How many companies can say that at a time when it seems many companies cannot even handle answering the phone? The carrying value of a company’s stock may be a lot lower than its current market capitalization. The company may have issued most of its shares long ago at a much lower share price than the current one. If a company has issued shares recently or at relatively high prices, its ROIC will be lower.
As you can see on the chart, Apple’s ROIC has improved dramatically over the past five years, even as the wide adoption of the company’s products and services has led to an overall slowdown in sales growth.
He went to China for cheap labor.
Not towards developers
What of the issues that iPhones are hackable
buying up massive its own stock for holders. i give him that about 'breathtaking'.
Slave labor is quite cheap. I don't know if we should be applauding it though.
Rising tide lifts all boats as they say and Apple has benefitted from excess liquidity. But 1. He hasn't been tested in a down economy 2. He has let the products get more and more buggy and less and less exclusive. Nobody lines up to buy a new iPhone any more or at full price.
It's easy at 0 rates the Fed buying bonds There's no more free money Tell me how he looks by this time next year
Breathtaking?!? 😂😂😂 what does he have on you? Y'all so classless, desperately pandering is such a bad look.