Apple Inc. Financial Statements and Financial Ratios Analyzed

Apple Inc. Financial Statements and Financial Ratios Analyzed

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

$5.99
  • 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

$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.
  • 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).

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. Financial Report by Paul Borosky, MBA.
  • Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.
  • Included - Analyst "Letter Grades" for ratios.
  • **See Terms and Conditions.

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. 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

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, manufacture, 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 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.

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.

SG&A:    

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. Summaized Income Statement 2021- 2017

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

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