Apple Inc. Financial Statements and Financial Ratios Analyzed from 2015 to 2019

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Hey All,

Thanks for visiting my Apple Inc. Financial Report page. On this page, you will be able to find preliminary information about Apple's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Apple's financial performance, please check out the "Financial Report".  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 important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five year’s 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 provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is were I use plain English to explain concepts.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

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Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Apple Inc.: Brief Summary

Apple Inc. is currently located at One Apple Park Way in Cupertino, CA. the organization competes in the consumer electronics industry.  Currently, the firm employs over 100,000 individuals.  Their CEO is Tim Cook.  As for CFO, this would be Luca Maestri. Finally, their chief operating officer is Jeffrey Williams.

Apple Incorporated specializes in designing and manufacturing communication devices, such as phones and iPads. In addition, the organization also generates revenues from its online store and various license agreements.  Popular products for the organization include iPhone, iPad, iMac, and iWatch.

Currently, the company has a market capitalization of approximately $955 billion.  The company’s data is .91.  This indicates that the firm is slightly less risky as compared to the overall market.  As for earnings, the firm has a current earnings per share of 12.12.

Apple Financial Report Sources

“Apple Inc. 2019 Company Analysis… For Beginners: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA. and owner of Quality Business Plan.  In this report, I used Apple’s 2018 10k, Apple’s 2017 10k annual report, Apple’s 2016 10k annual report, Apple’s 2015 10k annual report, and Apple’s 2019 10k annual report as the basis for information gathering. 

 

Section 1: Apple Inc. Income Statement Analyzed 2015 to 2019

In this section, I walk through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Apple’s important income statement line item trends from 2015 to 2019, in most cases.

Revenue Growth for Apple: The average annual growth rate for Apple’s revenues over the last five years has been approximately 3.1%.  From 2016 to 2017, the company had outstanding growth at about 15.9%.  For the last year, the growth dropped by 2%.  The main driver for revenue growth has been new innovative products released by the organization.

SG&A:    SG&A has continued to grow, as a percentage of sales, in the last five years.  This indicates that the organization is continually adding additional overhead costs to the organization at a faster pace than revenue growth.

Apple Inc. Income Statement 2019

2019 2018 2017 2016 2015
Revenues                  260,174                  265,595                  229,234                  215,639                    233,715
COGS                  161,782                  163,756                  141,048                  131,376                    140,089
Gross Profit                    98,392                  101,839                    88,186                    84,263                      93,626
SG&A                    18,245                    16,705                    15,261                    14,194                      14,329
Depreciation                            -                            -                            -                            -                             -
R & D                    16,217                    14,236                    11,581                    10,045                        8,067
Other                            -                            -                            -                            -                             -
Operating Expenses                    34,462                    30,941                    26,842                    24,239                      22,396
EBIT                    63,930                    70,898                    61,344                    60,024                      71,230
Other Income                      1,807                      2,005                      2,745                      1,348                        1,285
Interest Expense                      8,805                      6,500                      3,500                            -                             -
EBT                    65,737                    66,403                    60,589                    61,372                      72,515
Taxes                    10,481                    13,372                    15,738                    15,685                      19,121
Net Income                   55,256                   59,531                   48,351                   45,687                    53,394
Tax Rate 15.9% 20.1% 26.0% 25.6% 26.4%

Section 2: Apple Inc. Balance Sheet Analyzed from 2015 to 2019

For Apple Inc. balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define the Apple’s balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019.  Next, I then offer a summary analysis of Apple’s important balance sheet line items.

Cash:    Apple’s cash position ended in 2015 at $21.1 billion.  For 2019, the cash position more than doubled to $48.8 billion.  This indicates that the organization may not be fully exploiting cash usage.  A better action would be for the company to invest additional money into short-term investment vehicles.  At least the significant cash pile will be earning some type of return for the organization.

 Accounts Receivable:  The Accounts Receivable for Apple was 8.8% of sales in 2019.  This is a significant increase from 2015, which was 7.2%.  This means that Apple may be loosening the credit availability to retailers.  This could also mean that Apple’s Accounts Receivable department may not be as efficient as in previous years.

Apple Inc. Summary Balance Sheet 2019

2019 2018 2017 2016 2015
Cash                      48,844                  25,913                  20,289                  20,484                  21,120
Short Term Investment                      51,713                  40,388                  53,892                  46,671                  20,481
Account Receivable                      22,926                  23,186                  17,874                  15,754                  16,849
Inventory                        4,106                    3,956                    4,855                    2,132                    2,349
Other                      12,352                  37,896                  31,735                  21,828                  28,579
Current Assets                  162,819              131,339              128,645              106,869                89,378
Net PPE                      37,378                  41,304                  33,783                  27,010                  22,471
Goodwill                              -                         -                         -                    5,414                    5,116
Other                      32,978                324,421                324,421                289,262                262,758
Total Assets                  338,516              365,725              375,319              321,686              290,345
Accounts Payable                      46,236                  55,888                  44,242                  37,294                  35,490
Accrued Expense                              -                  32,687                  30,551                  22,027                  25,181
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                        5,980                  11,964                  11,977                    8,105                    8,499
LT Debt - Current                      10,260                    8,784                    6,496                    3,500                    2,500
Other                              -                         -                         -                         -                         -
Total Current Liabilities                    105,718                116,866                100,814                  79,006                  80,610
LT Debt                      91,807                  93,735                  97,207                  75,427                  53,329
Other                      50,503                164,843                144,065                118,010                117,661
Total Liabilities                  248,028              258,578              241,272              193,437              170,990
Common Stock                      45,174                  40,201                  35,867                  31,251                  27,416
Treasury                              -                         -                         -                         -                         -
Retained Earnings                      45,898                  70,400                  98,330                  96,364                  92,284
Other                              -                  (3,454)                     (150)                       634                     (345)
Total Equity                    90,488              107,147              134,047              128,249              119,355
Total Equity & Liability                  338,516              365,725              375,319              321,686              290,345

Section 3: Apple Inc. Financial Ratios Analyzed from 2015 to 2019

For this section, I have chosen several different financial ratios to review for Apple Inc from 2015 to 2019.  In reviewing each of Apple’s financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Apple’s Important Financial ratios. 

Apple's Current Ratio:

Apple’s current ratio increased to 1.54 in 2019.  This is substantially up from 1.12 and 2018.  The main reason for the significant increase is the organization’s horde of cash.

Apple's Total Asset Turnover:

Total asset turnover for Apple increased slightly from .73 in 2018 to .77 and 2019.  This increase shows that the firm increases its overall efficiencies about their assets.

Apple's Fixed Asset Turnover:

The fixed asset turnover for Apple increased from 6.43 in 2018 to 6.96 in 2019.  This indicates that the company used its fixed assets like equipment and factories at a higher operating efficiency as compared to the previous year.

Apple's Return on Assets:

Apple’s return on assets in 2015 at 18.39%.  As of 2019, the return on assets fell to 16.32%.  This indicates that the company is utilizing its assets less efficiently over the last five years.  To mitigate this issue, the organization may choose to lower their prices to increase sales and elevate their asset utilization.  Or, the company may choose to liquidate some of their assets to better align with company needs.

Apple's Return on Equity:

In 2015, Apple's return on equity was 44.74%.  This ratio skyrocketed to 61.06% in 2019.  The main driver for the return on equity increase could be that the company is using more debt for growth and operations as compared to equity.  Also, the growth in dividend payments may help because the cash payouts reduce the overall total assets.  This in turn, slightly increases the return on equity.

Apple Inc. Liquidity Ratios 2019

Ratios 2019 2018 2017 2016 2015
Current Ratio                           1.54                    1.12
Cash Ratio                           0.46                    0.22
Quick Ratio                           1.50                    1.09
Net Working Capital                       29,640              (35,520)

Apple Inc. Asset Utilization 2019

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.77                    0.73
Fixed Asset Turnover                           6.96                    6.43
Days Sales Outstanding                         32.16                  31.86
Inventory Turnover                         63.36                  67.14
Accounts Receivable Turnover                         11.35                  11.45
Working Capital Turnover                           8.78                  (7.48)
AP Turnover                           5.63                    4.75
Average Days Inventory                           0.17                    0.18
Average Days Payable                           0.02                    0.01

Apple Inc. Profitability Ratios 2019

Ratios 2019 2018 2017 2016 2015
Return on Assets 16.32% 16.28% %
Return on Equity 61.06% 55.56% %
Net Profit Margin 21.24% 22.41% %
Gross Profit Margin 37.82% 38.34% %
Operating Profit Margin 24.57% 26.69% %
Basic Earning Power 18.89% 19.39% %
ROCE 27.46% 28.49% %
Capital Employed                     232,798              248,859
ROIC 80.18% 978.92% %