Apple Inc. Financial Statements and Financial Ratios Analyzed from 2016 to 2020

Expert Apple Inc. Financial Report & Analysis

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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 the 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 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.

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

Sincerely,

Paul, MBA. (Updated 2021)

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Apple 2020 Financial Report by Paul Borosky 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 $2.078T.  The company’s beta is 1.30.  This indicates that the firm is slightly more risky as compared to the overall market.  As for earnings, the firm has a current earnings per share of 3.28.

Apple Financial Report Sources

“Apple Inc. 2020 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 2020 10k annual report, and Apple’s 2019 10k annual report as the basis for information gathering. 

 

Section 1: Apple Inc. Income Statement Analyzed 2016 to 2020

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 2016 to 2020, in most cases.

Revenue Growth for Apple:

Apple ended 2016 with approximately $215.6 billion in revenues.  In the next two years, the organization would increase its revenues to $265.5 billion.  However, in 2019, the organization's revenues would drop to $260.1 billion.  Fortunately, the firm's revenues would rebound in 2020, ending the year at $274 billion.  This is an average revenue growth rate of approximately 6.4%.

SG&A:    

Apple's SG&A in 2016 was $14.1 billion.  In the next four years, the organization would continually increase its SG&A ending 2020 at $19.9 billion.  As compared to revenues, in 2016, Apple's SG&A was 6.6% of revenues.  In the next year, its SG&A, as compared to revenues, would increase to 6.7%.  Fortunately, in 2018, the organization's SG&A, as compared to sales, would fall to 6.3%.  However, in 2019 and 2020, the organization's SG&A would climb substantially, ending 2020 at 7.3% of revenues.

Apple Inc. 2020 Income Statement Summary

Column1

2020

2019 2018 2017

2016

Revenues

                 274,515

                 260,174                  265,595                  229,234

                   215,639

COGS

                 169,559

                 161,782                  163,756                  141,048

                   131,376

Gross Profit

                 104,956

                   98,392                  101,839                    88,186

                     84,263

 
SG&A

                   19,916

                   18,245                    16,705                    15,261

                     14,194

Depreciation

                   11,056

                   12,547                    10,903                    10,157

                     10,505

R & D

                   18,273

                   16,217                    14,236                    11,581

                     10,045

Other                            -                            -                            -                            -                             -
Operating Expenses

                   38,668

                   34,462                    41,844                    36,999

                     34,744

EBIT

                   66,288

                   63,930                    59,995                    51,187

                     49,519

Other Income

                        803

                     1,807                      2,005                      2,745

                       1,348

Interest Expense

                   12,629

                     8,805                      6,500                      3,500

                       2,500

EBT

                   67,091

                   65,737                    55,500                    50,432

                     48,367

Taxes

                     9,680

                   10,481                    13,372                    15,738

                     15,685

Net Income

                  57,411

                  55,256                   59,531                   48,351

                   32,682

Section 2: Apple Inc. Balance Sheet Analyzed from 2016 to 2020

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 2016 to 2020.  Next, I then offer a summary analysis of Apple’s important balance sheet line items.

Cash.

Apple ended 2016 with $20.4 billion in cash.  In the next year, the organization would slightly reduce its cash position ending 2017 at $20.2 billion.  In the next two years, Apple would substantially increase their cash position ending 2019 with $48.8 billion in the bank.  However, in 2020, the organization's cash position would fall to $38 billion.

 Accounts Receivable.

Apple's accounts receivable ended 2016 at $15.7 billion.  In the next two years, the organization would substantially increase its accounts receivable ending 2018 at $23.1 billion.  However, in the next two years, the organization would take steps to drastically reduce their accounts receivable, ending 2020 at $16.1 billion. 

Apple Inc. 2020 Summary Balance Sheet

2020

2019 2018 2017

2016

Cash

                     38,016

                 48,844                  25,913                  20,289

                 20,484

Short Term Investment

                     52,927

                 51,713                  40,388                  53,892

                 46,671

Account Receivable

                     16,120

                 22,926                  23,186                  17,874

                 15,754

Inventory

                       4,061

                   4,106                    3,956                    4,855

                   2,132

Other
Current Assets

                 143,713

             162,819                93,443                96,910

               85,041

Net PPE

                     36,766

                 37,378                  41,304                  33,783

                 27,010

Goodwill

                             -

                        -                         -                         -

                   5,414

Other
Total Assets

                 323,888

             338,516              365,725              375,319

             321,686

Accounts Payable

                     42,296

                 46,236                  55,888                  44,242

                 37,294

Accrued Expense

                             -

                        -                  32,687                  30,551

                 22,027

Accrued Taxes

                             -

                        -                         -                         -

                        -

Notes Payable

                       4,996

                   5,980                  11,964                  11,977

                   8,105

LT Debt - Current

                       8,773

                 10,260                    8,784                    6,496

                   3,500

Other                         -                         -                         -                         -
Total Current Liabilities

                   105,392

               105,718                116,866                100,814

                 79,006

LT Debt

                     98,667

                 91,807                  93,735                  97,207

                 75,427

Other
Total Liabilities

                 258,549

             248,028              258,578              241,272

             193,437

Common Stock

                     50,779

                 45,174                  40,201                  35,867

                 31,251

Treasury                              -                         -                         -                         -                         -
Retained Earnings

                     14,966

                 45,898                  70,400                  98,330

                 96,364

Other
Total Equity

                   65,339

               90,488              110,601              134,197

             127,615

Total Equity & Liability

                 323,888

             338,516              365,725              375,319

             321,686

Section 3: Apple Inc. Financial Ratios Analyzed from 2016 to 2020

For this section, I have chosen several different financial ratios to review for Apple Inc from 2016 to 2020.  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 for 2016 was 1.08.  In the next two years, the company would substantially reduce its current ratio ending 2018 at .8.  Fortunately, the organization would rebound from a low current ratio ending 2020 at 1.36.

Apple's Total Asset Turnover:

Apple's total asset turnover ended 2016 at .67.  In the next year, the organization's total asset turnover would fall to .61.  Fortunately, the company would take steps to improve the total asset turnover for the next three years, which resulted in a total asset turnover of .85 in 2020. 

Apple's Return on Assets:

Apple's return on assets ended in 2016 at 10.1%.  In the next four years, the organization would systematically improve their return on assets and end 2020 at 17.7%. 

Apple's Debt Ratio:

Apple's debt ratio in 2016 ended at 23.4%.  In the next two years, the organization would moderately increase its debt ratio ending 2018 at 25.6%.  However, in the next two years, the company's debt ratio would substantially increase in 2020 to 30.4%. 

Apple Liquidity Ratios 2020

Ratios

2020

2019 2018 2017

2016

Current Ratio

                          1.36

                   1.54

     
Cash Ratio

                          0.36

                   0.46

     
Quick Ratio

                          1.33

                   1.50

     
Net Working Capital

                      15,901

               29,640

     
     

Apple Asset Utilization 2020

Ratios

2020

2019 2018 2017

2016

Total Asset Turnover

                          0.85

                   0.77

     
Fixed Asset Turnover

                          7.47

                   6.96

     
Days Sales Outstanding

                        21.43

                 32.16

     
Inventory Turnover

                        67.60

                 63.36

     
Accounts Receivable Turnover

                        17.03

                 11.35

     
Working Capital Turnover

                        17.26

                   8.78

     
AP Turnover

                          6.49

                   5.63

     
Average Days Inventory

                          8.74

                   9.26

     
Average Days Payable

                        91.05

               104.31

     
Cash Conversion Cycle

                      (60.87)

               (62.89)

     
     

Apple Profitability Ratios 2020

Ratios

2020 2019 2018 2017

2016

Return on Assets

17.73%

16.32%

     
Return on Equity

87.87%

61.06%

     
Net Profit Margin

20.91%

21.24%

     
Gross Profit Margin

38.23%

37.82%

     
Operating Profit Margin

24.15%

24.57%

     
Basic Earning Power

20.47%

18.89%

     
ROCE

30.34%

27.46%

     
Capital Employed

                    218,496

             232,798

     
ROIC

107.70%

80.18%

     
     

Apple Long-term Debt 2020

Ratios

2020

2019 2018 2017

2016

Debt Ratio

30.46%

27.12%

     
Debt/Equity

151.01%

101.46%

     
Times Interest Earned

                          5.25

                   7.26