increased tremendously in 2013 by 123.01% compared to 2012. However, in 2014, it increased by 19.67% compared to 2013. Apple Inc. explains the change; “The Company must order components for its products and create inventory before shipping the products” (Apple, 40). Furthermore, the vertical analysis shows that the inventory is less than 1%, i.e. 0.45%, 0.85% and 0.91% for 2012, 2013 and 2014 respectively. In this case, it seems that Apple Inc .does not have much inventory and does not manage it well on time. In contrast, Hewlett-Packard Co. experienced a decrease in inventory by 4.29% in 2013 compared to 2012. Furthermore, its inventory increased by 6.10% in 2014 compared to 2013. These changes were mainly made in based on changes in demand. “Factors influencing these adjustments include changes in demand, technological changes, product life cycle and development plans, component cost trends, product prices, physical deterioration, and quality issues” (Hewlett-Packard, 51). According to the vertical analysis, the inventory is found to be around 6% for 2012, 2013 and 2014, which means the company manages the inventory