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
- 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.
Apple Inc. Financial Report by Paul Borosky, MBA. - 2021
- 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.
Apple's Financial Report and Financial Analysis
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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
Click Below for the CURRENT
Downloadable PDF Price!!
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
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.
Apple’s cost of goods sold as compared to revenues increased from 61.5% in 2017 to 62.2% in 2019. This increase may indicate that the firm had lowered the prices of their products or their cost of goods increased, but the company was not able to pass on the increased prices to consumers through higher-priced products.
From 2019 to 2021, the organization was able to reduce its cost of goods as compared to revenues from 62.2% to 58.2%. This indicates that the company either did a better job with negotiating raw material prices or the firm increased product prices to cover the elevated raw material costs.
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’s property, plant, and equipment in 2019 were $37.3 billion, which was 108.5% of sales. In the next two years, the organization’s property, plant, and equipment would climb modestly to $39.4 billion. However, their property, plant, and equipment as compared to sales would only be 89.9%. This shows that the firm continually increased its equipment and property usage capacity to meet sales demands. An excellent trend!
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 as of 2021 is 1.02. The ratio is down moderately from the previous year of 1.33. Most companies in the tech industry, based on my experience and recollection, have quick ratios slightly below 1.0. So, with 1.01 as a quick ratio, this is not too bad. However, it could be a little bit lower for optimal short-term asset utilization.
https://youtu.be/aEiaQViIV3U
Apple's Fixed Asset Turnover Ratio
In 2018, Apple’s fixed asset turnover was 6.4. In the next four years, the firm would continually improve the utilization of its fixed assets, ending 2021 at 9.28. This shows that the company is improving the utilization of its fixed assets on a continuous basis.
Apple 2021 Liquidity Ratios |
|||||
| Ratios |
2021 |
2020 |
|
||
| 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 | |||
| 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 | |||
| 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 | |||
| Debt Ratio |
35.53% |
34.71% |
|||
| Debt/Equity |
197.68% |
172.08% |
|||
| Times Interest Earned |
12.45 |
5.25 |
|||