Apple Inc. Financial Analysis and Financial Ratios

Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Apple's financial performance using Apple's summarized income statements and balance sheets for the last five years, 2016 to 2020, found in their Annual Reports and Apple's 10ks. 

Further, our financial model also calculates over 20 popular financial ratios, such as Apple's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Apple Inc. Financial Report", where we offer insights into understanding Apple's financial standing through insightful financial analysis.

A Beginner's Guide to Apple Inc. Financial Analysis - 2021

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

Apple Inc. Financial Report by Paul Borosky, MBA. - 2021

$14.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios.
  • Included Free Annual Reports Download for the company (5 years).

Apple's Financial Report and Financial Analysis

A Beginners Guide to Apple Financial Analysis by Paul Borosky, MBA.

Price: $9.99

Apple Inc. 2021 Beginner's Guide

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Sample Income Statement 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 12
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 15
  • Balance Sheet Sample 15
  • Cash 16
  • Short-Term Investments 17
  • Accounts Receivables 17
  • Inventory 18
  • Current Assets 19
  • Property, Plant, and Equipment (PP&E) 20
  • Total Assets 20
  • Accounts Payable 21
  • Accrued Expenses 22
  • Short-Term Debt 23
  • Total Current Liabilities 24
  • Long Term Debt (LT Debt) 25
  • Total Liabilities 26
  • Common Stock and Additional Paid-in Capital 27
  • Treasury 27
  • Retained Earnings 28
  • Total Equity 29
  • Financial Ratios 30
  • Liquidity Ratios 31
  • Current Ratio 31
  • Quick Ratio 32
  • Cash Ratio 33
  • Asset Ratios 35
  • Total Asset Turnover 36
  • Fixed Asset Turnover 37
  • Days Sales Outstanding 37
  • Inventory Turnover 38
  • Accounts Receivable Turnover 39
  • Accounts Payable Turnover 40
  • Other Asset Ratio Calculations 41
  • Working Capital Turnover 41
  • Average Days in Inventory 41
  • Average Days Payable 41
  • Profitability Ratios 43
  • Return on Assets (ROA) 43
  • Return on Equity (ROE) 44
  • Net Profit Margin 45
  • Gross Profit Margin 46
  • Operating Profit Margin 46
  • Debt Ratios 48
  • Debt Ratio 48
  • Debt to Equity Ratio 49
  • Times Interest Earned 50
Apple Inc. Financial Report and Analysis by Paul Borosky, MBA.

Price: $14.99

Apple Inc. 2021 Financial Report

Table of Contents

  • Disclaimer 3
  • Acknowledgments 4
  • Forward 5
  • About the Author 7
  • Income Statement 8
  • Sample Income Statement 8
  • Revenues 9
  • Cost of Goods Sold (COGS) 10
  • Selling, General, and Administrative Expenses (SG&A 11
  • Research and Development (R&D) 13
  • Operating Expenses 14
  • Earnings Before Interest and Taxes (EBIT 14
  • Interest Expense 15
  • Earnings Before Taxes (EBT) 16
  • Taxes 17
  • Net income 18
  • Tax Rate 19
  • Balance Sheet 21
  • Balance Sheet Sample 21
  • Cash 22
  • Short-Term Investments 23
  • Accounts Receivables 24
  • Inventory 25
  • Current Assets 26
  • Property, Plant, and Equipment (PP&E) 28
  • Total Assets 29
  • Accounts Payable 30
  • Accrued Expenses 32
  • Short-Term Debt 32
  • Total Current Liabilities 34
  • Long Term Debt (LT Debt) 35
  • Total Liabilities 36
  • Common Stock and Additional Paid-in Capital 37
  • Treasury 38
  • Retained Earnings 39
  • Total Equity 40
  • Financial Ratios 42
  • Liquidity Ratios 43
  • Current Ratio 43
  • Quick Ratio 44
  • Cash Ratio 46
  • Asset Ratios 48
  • Total Asset Turnover 49
  • Fixed Asset Turnover 50
  • Days Sales Outstanding 51
  • Inventory Turnover 53
  • Accounts Receivable Turnover 54
  • Accounts Payable Turnover 55
  • Other Asset Ratio Calculations 56
  • Working Capital Turnover 56
  • Average Days in Inventory 57
  • Average Days Payable 57
  • Profitability Ratios 58
  • Return on Assets (ROA) 58
  • Return on Equity (ROE) 60
  • Net Profit Margin 61
  • Gross Profit Margin 62
  • Operating Profit Margin 63
  • Debt Ratios 66
  • Debt Ratio 66
  • Debt to Equity Ratio 67
  • Times Interest Earned 68
  • Summary 71
  • Apple’s Strengths 71
  • Apple’s Weaknesses 71
  • Apple’s Final Grade 71

Apple's Financial Report by Paul Borosky, MBA.

Hey All,

Thanks for considering my Apple Inc. Financial Report. In this report, you will be able to find preliminary information about Apple's current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of the important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

Sincerely,

Paul, MBA.

Sample Report

Sample report 2
Financial Report Sample 1

Apple Inc. Income Statement Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc. in detail.  Finally, I offer a summary analysis of the company's important income statement line item trends.  For example,...

Apple's Cost of Goods Sold.

In 2016, Apple's cost of goods sold was approximately $131.3 billion or 60.9% of revenues.  In the next three years, Apple's cost of goods sold would increase to $161.7 billion or 62.2% of revenues.  Fortunately, the company would change up its strategy with a cost of goods sold at $169.5 billion in 2020.  However, the cost of goods sold as compared to revenues for 2020 was 61.8%.

The reduction in the cost of goods sold as compared to revenues in 2020 indicates that the company may have taken steps to either increase prices for products to better align prices with raw material costs.  Or, Apple has done a better job negotiating raw material costs with suppliers.  Regardless of which action Apple's executives take, maintaining a cost of goods as compared to revenues should stay at approximately 61.5%.

Apple Inc. Summarized Income Statement 2021

Column1

2021

2020 2019 2018

2017

Revenues

                 365,817

                 274,515                  260,174                  265,595                    229,234
COGS

                 212,981

                 169,559                  161,782                  163,756

                   141,048

Gross Profit

                 152,836

                 104,956                    98,392                  101,839

                     88,186

 
SG&A

                   21,973

                   19,916                    18,245                    16,705

                     15,261

Depreciation

                   11,284

                   11,056                    12,547                    10,903

                     10,157

R & D

                   21,914

                   18,273                    16,217                    14,236

                     11,581

Other                            -                            -                            -                            -                             -
Total Operating Expenses

                   43,887

                   38,668                    34,462                    41,844

                     36,999

EBIT

                 108,949

                   66,288                    63,930                    59,995

                     51,187

Other Income

                        258

                        803                      1,807                      2,005

                       2,745

Interest Expense

                     8,750

                   12,629                      8,805                      6,500

                       3,500

EBT

                 109,207

                   67,091                    65,737                    55,500

                     50,432

Taxes

                   14,527

                     9,680                    10,481                    13,372

                     15,738

Net Income                   94,680                   57,411                   55,256                   59,531

                   48,351

Apple Inc. Balance Sheet Analysis Sample

In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is important.  From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail.  Finally, I offer a summary analysis of the company's important balance sheet line item trends.  For example,...

Apple's Property, Plant, and Equipment

Apple ended 2016 with approximately $27 billion in property, plant, and equipment.  In the next two years, the organization would substantially increase its property, plant, and equipment ending 2018 at $41.3 billion.  However, in the next two years, the organization would take steps to lower its property, plant, and equipment, ending 2020 at approximately $36.7 billion.

When an organization reduces their property, plant, and equipment, this shows that either the firm has been underutilizing their property, plant, and equipment for a moderate-term and needs to take action to better align their future sales with fixed assets.  Or, the organization is anticipating lower revenues in the foreseeable future.  From the lower revenues, less fixed assets will be needed to accommodate sales.  In Apple's case, it's my opinion that the company has had too many fixed assets for too long, and they are now finally taking steps to better utilize assets.

Apple Inc. Summary Balance Sheet 2021

Column1

2021

2020 2019 2018

2017

Cash

                     34,940

                 38,016                  48,844                  25,913

                 20,289

Short Term Investment

                     27,699

                 52,927                  51,713                  40,388

                 53,892

Account Receivable

                     26,278

                 16,120                  22,926                  23,186

                 17,874

Inventory

                       6,580

                   4,061                    4,106                    3,956

                   4,855

Other                              -                         -                         -                         -                         -
Current Assets

                 134,836

             143,713              162,819                93,443

               96,910

Net PPE

                     39,440

                 36,766                  37,378                  41,304

                 33,783

Goodwill                              -                         -                         -                         -                         -
Other                              -
Total Assets

                 351,002

             323,888              338,516              365,725

             375,319

Accounts Payable

                     54,763

                 42,296                  46,236                  55,888

                 44,242

Accrued Expense

                             -

                        -                         -                  32,687

                 30,551

Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable

                       6,000

                   4,996                    5,980                  11,964

                 11,977

LT Debt - Current

                       9,613

                   8,773                  10,260                    8,784

                   6,496

Other                         -                         -                         -
Total Current Liabilities

                   125,481

               105,392                105,718                116,866

               100,814

LT Debt

                   109,106

                 98,667                  91,807                  93,735

                 97,207

Other
Total Liabilities

                 287,912

             258,549              248,028              258,578

             241,272

Common Stock

                     57,365

                 50,779                  45,174                  40,201

                 35,867

Treasury                              -                         -                         -                         -                         -
Retained Earnings

                       5,562

                 14,966                  45,898                  70,400

                 98,330

Other
Total Equity

                   63,090

               65,339                90,488              110,601

             134,197

Total Equity & Liability

                 351,002

             323,888              338,516              365,725

             375,319

Apple Inc. Financial Ratios Sample

In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.

Apple's Quick Ratio

Apple's quick ratio ended 2016 at 1.05.  In the next two years, the organization's quick ratio would fall to .77.  Fortunately, in the next two years, the company would take steps to improve the quick ratio ending 2020 at 1.3.  This means that without inventory, the firm has plenty of liquid assets to cover current liabilities.  From an investor's perspective, reducing the quick ratio closer to 1.0 may behoove the company.  In order to do this, the company may need to increase their cash position.

Apple's Fixed Asset Turnover Ratio

Apple's fixed asset turnover ended 2016 at 7.98.  In the next two years, the organization's fixed asset turnover would fall to 6.43 ending 2018.  Fortunately, the company would take steps to improve their fixed asset turnover ending 2020 at 7.47.  This shows that the company may have sold off some of their fixed assets to better utilize their property, plant, and equipment.  As revenues continue to grow, investors should anticipate a leveling off of the firm's fixed asset turnover.

Apple's Return on Equity

Apple's return on equity ended 2016 at 25.6%.  In the next four years, the organization's return on equity would substantially increase, ending 2020 at 87.8%.  The main reason for the organization's continued increase in return on equity would be their correlated accumulation of debt.  In other words, as the company took on more debt, their return on equity increased as well.  This shows that the firm is making money on borrowed money.  Also, this indicates that the company is using borrowed funds for growth and operational purposes—a common strategy for multinational organizations.

Apple 2021 Liquidity Ratios

Ratios

2021

2020 2019 2018

2017

Current Ratio

                          1.07

                   1.36

Cash Ratio

                          0.50

                   0.86

Quick Ratio

                          1.02

                   1.33

Net Working Capital

                        9,355

               38,321

Apple 2021 Asset Utilization

Ratios 2021 2020 2019 2018 2017
Total Asset Turnover

                          1.04

                   0.85

Fixed Asset Turnover

                          9.28

                   7.47

Days Sales Outstanding

                        21.15

                 25.96

Inventory Turnover (Using Sales)

                        68.76

                 67.23

Inventory Turnover (Using COGS)

                        40.03

                 41.52

Accounts Receivable Turnover

                        17.26

                 14.06

Working Capital Turnover

                        39.10

                   7.16

AP Turnover

                          4.44

                   3.83

Average Days Inventory

                          9.12

                   8.79

Average Days Payable

                        82.20

                 95.31

Apple 2021 Profitability Ratios

Ratios 2021 2020 2019 2018 2017
Return on Assets

26.97%

17.73%

Return on Equity

150.07%

87.87%

Net Profit Margin

25.88%

20.91%

Gross Profit Margin

41.78%

38.23%

Operating Profit Margin

29.78%

24.15%

Basic Earning Power

31.04%

20.47%

ROCE

48.31%

30.34%

Capital Employed

                    225,521

             218,496

ROIC

50.29%

31.91%

Apple 2021 Debt Ratios

Ratios 2021 2020 2019 2018 2017
Debt Ratio

35.53%

34.71%

Debt/Equity

197.68%

172.08%

Times Interest Earned

                        12.45

                   5.25