Steps for Figuring out Apple’s Annual Stockholder’s Equity Growth

Return 14 Times Larger

The growth of stockholder’s equity represents true growth of capital for investors. CNQ’s robust equity expansion enabled CNQ stock to out perform all other investments that do not have equity growth. CNQ stock produced returns that were 14 times greater than the returns for gold, 5-Year Treasury bonds, home prices and T-Bills demonstrating the superior returns offered by companies with high equity expansion rates.

The examples that follow picture firms with high equity growth rates that were little and micro cap firms at the start of the trial period. These firms represent a broad cross section of industries including brokerage services, ceramics producing, tool making, electric products manufacturing and energy systems.

The average return of these stocks over the testing period was 1,370% demonstrating the ability of high asset value growers to make wealth for investors. There is little micro about the high equity expansion rates and the aptitude for profits in the examples I am about to show you! Be ready to be impressed!

Downloading Equity Expansion Rates

A corporation's stockholder’s equity information can simply be downloaded from websites like Google Finance or ycharts.com. Let’s go thru the steps to download equity expansion rates from Google Finance. Sign in to http://www.google.com/finance and type in the symbol of the company that you would like to inspect. This will display quote info for the chosen stock. I typed in ‘CLH ‘ the symbol for Clean Harbors Inc a tiny cap stock and received the quote info displayed below. On the left side of the quote display there's a column of additional information available for the chosen stock. Under Summary select ‘Financials ‘ .and this can display a company's stockholder equity information at the base of the balance sheet page. I included the balance sheet information for Apple Inc symbol AAPL on the following page.

Working out Yearly Stockholder’s Equity Expansion

For the period ending 25-Sep-04 Apple’s stockholder’s equity or intrinsic worth was 5,076,000 which is circled above (all numbers in thousands). Two years later on 30-Sep-06 Apple’s stockholder’s equity was 9,984,000. If we take away the 5,076,000 beginning figure from the 9,984,000 ending figure the net result is a 4,908,000 gain in stockholder’s equity for the 2 year period. If we divide the gain of 4,908,000 by the starting stockholder’s equity figure 5,076,000 the result is a 96.6% % gain in stockholder’s equity. If we then divide the 96.6% total gain by 2 (years) the result is a yearly % gain in stockholder’s equity of 48%. Kept takings is the biggest component of Apple’s stock holder’s equity. The majority of the rise in Apple’s stockholder’s equity was the results of the growth in retained earnings which grew at a 55% annual rate over the same two year period.

Kept earnings expansion reflects a corporation's capability to grow its earnings and to keep those takings. Stockholder’s equity accounts for a firm's capability to keep its earnings and a firm's debt level as debt reduces stockholder’s equity. So a corporation's stockholder’s equity expansion is the best overall measurement of the ability of a company to grow its revenues and to retain its earnings. A company with an elevated level of stockholder’s equity growth provides business worth to its investors as the true worth or natural price of a company grows.

Steps for Calculating Apple’s Yearly Stockholder’s Equity Growth:

1. Log in to Yahoo Finance and click ‘Balance Sheet ‘ to get a firm's stock holder’s equity info. Apple’s current net worth is 9,984,000 and 2 year’s back its net worth was 5,076,000.

2. Take away the net worth from two years ago (5,076,000) from the prevailing net worth (9,984,000) to get the 2 year increase in net worth which would be 4,908,000 in this example.

3. Divide the two year increase in net worth (4,908,000) by the starting net worth from 2 years ago (5,076,000) and multiply by. 100 to get the 2 year total % increase in net worth which would be 96.6% in this example.

4. Divide the 2 year pc rise in net worth by 2 to get the once a year percentage raise in net worth which would be 48% in this example.

5. If the yearly % increase in net worth is 10% or larger then the stock qualifies as a Wealth Building Stock.

Chuck hughes Stock Investments