Apple Inc. Financial Statements and Financial Ratios Analyzed

Apple Inc. Financial Statements and Financial Ratios Analyzed

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, I offer two reports, which are "A Beginner's Guide to Apple Inc. Financial Analysis" and "Apple Inc. Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • 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.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Apple Inc. Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

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

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

Apple Inc. Beginner's Guide to Financial Analysis

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Apple Inc. Financial Report by Paul Borosky, MBA.

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Sample Financial Report

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

***Summary analysis is not included in the "Beginner's Guide" version.

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 150,000 individuals.  Their CEO is Tim Cook.  As for CFO, this would be Luca Maestri. Finally, their chief operating officer is Jeffrey Williams.

Apple Inc. designs, manufactures and sells iPhones, Macs, iPods, watches, and complementary accessories the world over.  Apple Inc. also sells various related services like Apple TV and iPads, AppleCare support services, and cloud services store services. 

Currently, our Apple financial analysis has found that the company has a market capitalization of approximately $2.6T.  The company’s beta is 1.20.  This indicates that the firm is slightly riskier as compared to the overall market.  As for earnings, the firm has current earnings per share of 5.61 (1/22).

Apple Financial Report Sources

“A Beginner's Guide to Analyzing Apple's Financial Statements and Financial Ratios” and "Apple Inc. Financial Report" were written by Paul Borosky, MBA., and owner of Quality Business Plan.  In this report, I used Apple’s 2017 10k, Apple’s 2018 10k annual report, Apple’s 2019 10k annual report, Apple’s 2020 10k annual report, and Apple’s 2021 10k annual report as the basis for information gathering. 

 

Snipits From Apple Inc. Financial Report by Paul Borosky, MBA.

Section 1: Apple Inc. Income Statement Analyzed

In this section, I walk through a broad definition of 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.

Revenue Growth for Apple:

Apple’s revenues increased at an impressive 15.9% growth rate from 2017 to 2018.  Also, the organization’s revenue growth rate decreased in 2019 by approximately 2%.  Finally, in the last five years, Apple’s annual average growth rate for revenues was approximately 13.1%, which is an impressive annual revenue growth rate for a mature company.

Analyst Grade: A

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

 

Section 2: Apple Inc. Balance Sheet Analyzed

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 Apple’s balance sheet line item, such as cash, property, plant and equipment, and liabilities.  Next, I then offer a summary analysis of Apple’s important balance sheet line items.

Cash.

Apple’s cash position grew substantially between 2017 and 2019.  The substantial cash position increase, well above previous years’ trends, may indicate that the firm mismanaged this balance sheet line item.  A better strategy would have been to allocate excessive cash funds to short-term investments.

Analyst Grade: A

 

Apple Inc. Summary Balance Sheet 2017-2021

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

 

Section 3: Apple Inc. Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for Apple Inc.  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 was 1.07 as of 2021.  This indicates that the organization has sufficient short-term assets to cover short-term liabilities—an excellent position for the organization.

Analyst Grade: A

Apple's Return on Assets:

Apple’s return on assets ended 2017 at 12.88%.  Over the next five years, the organization would substantially improve its return on assets ending 2021 at 26.97%.  This shows that the firm is doing an excellent job not only with growing sales with fewer assets but also in controlling asset growth as well.

Analyst Grade: A