Apple Inc. Financial Statements and Financial Ratios Analyzed

Apple Inc. Financial Statements and Financial Ratios Analyzed

Hey All,

Thank you for visiting my webpage dedicated to Apple Inc. Financial Report. Here, you will find preliminary information on Apple's financial performance, historical records, and trends.

To delve deeper into Apple's financial performance, I offer two reports: "A Beginner's Guide to Apple Inc. Financial Analysis" and "Apple Inc. Financial Report by Paul Borosky, MBA." Both reports, authored by myself, Paul Borosky, MBA, a Doctoral Candidate, and published author, provide valuable insights and include the following:

  • Summarized income statements for the past 5 years.
  • Summarized balance sheets for the past 5 years.
  • Five years' worth of over twenty common financial ratios, including formulas, calculations, and analysis tips.
  • Line-by-line descriptions, explanations, and analysis tips for most financial statement line items and ratios.
  • Professional financial analysis tips to assist you in conducting your own financial analysis.
  • "In other words," segments where I explain complex concepts using plain English.

For a more comprehensive review of Apple's financial statements and ratios, I recommend purchasing my "Apple Inc. Financial Report." This comprehensive report includes all aspects of the "Beginner's Guide" and provides additional insights.

The financial report entails a professional analysis of crucial income statements, balance sheets, and financial ratio trends. Moreover, a "Letter Grade" is assigned to most financial statement line items and ratios, aiding in better understanding their trends over the past 5 years. An overall financial analysis summary for the company is also included.

Enjoy the preliminary information, and for a more detailed analysis, I encourage you to purchase the financial report.

Best regards,

Paul, MBA.

PDF/Downloadable Versions

A Beginners Guide to Apple Financial Analysis 2022 by Paul Borosky, MBA.

Click Below for the CURRENT

Downloadable PDF Price!!

Apple Inc. Financial Report by Paul Borosky, MBA.

Click Below for the CURRENT

Downloadable PDF Price!!

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., headquartered in Cupertino, CA, is a prominent player in the consumer electronics industry. With over 150,000 employees, the company is led by CEO Tim Cook, CFO Luca Maestri, and Chief Operating Officer Jeffrey Williams.

Apple Inc. excels in designing, manufacturing, and selling a wide range of sought-after products worldwide, including iPhones, Macs, iPods, watches, and accompanying accessories. The company also offers related services like Apple TV, iPads, AppleCare support services, and cloud storage solutions.

In terms of financial analysis, Apple Inc. exhibits a remarkable market capitalization of approximately $2.6 trillion, demonstrating its significant value in the market. With a beta of 1.20, Apple Inc. is slightly riskier than the overall market. As of January 2022, the company reported current earnings per share of $5.61, affirming its strong profitability.

This summary provides a concise overview of Apple Inc.'s location, industry presence, employee count, key executives, product portfolio, related services, financial highlights, and notable market performance.

Apple Financial Report Sources

The sources for the Apple Financial Report authored by Paul Borosky, MBA and owner of Quality Business Plan, include "A Beginner's Guide to Analyzing Apple's Financial Statements and Financial Ratios" and "Apple Inc. Financial Report." These reports are based on a thorough analysis of Apple's financial statements from various years, including the 2022 10k, 2021 10k annual report, 2020 10k annual report, 2019 10k annual report, and 2018 10k annual report. These sources are the foundation for gathering the necessary information to provide comprehensive insights into Apple's financial performance and ratios.

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

Section 1: Apple Inc. Income Statement Analyzed

This section provides a comprehensive explanation of the income statement, highlighting its significance in financial analysis. The importance of each income statement line item, such as revenues, gross profits, and more, is discussed in detail. A thorough understanding of Apple's income statement is achieved by defining and delving into each line item.

A summary analysis of Apple's significant income statement trends is presented after discussing income statement line items. This analysis provides key insights into the company's revenue generation, profitability, and cost management over a specified period. By examining the trends in each line item, analysts can identify patterns, strengths, and potential areas for improvement in Apple's financial performance.

This section is valuable for understanding Apple's income statement, interpreting its line items, and gaining insights into the company's financial health and operational efficiency. The summary analysis of income statement trends enhances the overall financial analysis and aids in making informed decisions regarding investment, financial planning, and business strategies related to Apple Inc.

Apple 2022 Summary Income Statement

Column1 2022 2021 2020 2019 2018
Revenues                  394,328                  365,817                  274,515                  260,174                    265,595
COGS                  223,546                  212,981                  169,559                  161,782                    163,756
Gross Profit                  170,782                  152,836                  104,956                    98,392                    101,839
SG&A                    25,094                    21,973                    19,916                    18,245                      16,705
Depreciation                    11,104                    11,284                    11,056                    12,547                      10,903
R & D                    26,251                    21,914                    18,273                    16,217                      14,236
Other                            -                            -                            -                            -                             -
Total Operating Expenses                    51,345                    43,887                    38,668                    34,462                      41,844
EBIT                  119,437                  108,949                    66,288                    63,930                      59,995
Other Income                        (334)                         258                         803                      1,807                        2,005
Interest Expense                      9,543                      8,750                    12,629                      8,805                        6,500
EBT                  119,103                  109,207                    67,091                    65,737                      55,500
Taxes                    19,300                    14,527                      9,680                    10,481                      13,372
Net Income                   99,803                   94,680                   57,411                   55,256                    59,531

Importance of Apple's Income Statement for Financial Analysis

The income statement of Apple Inc. plays a crucial role in financial analysis as it provides essential insights into the company's revenue, expenses, and profitability. Analyzing Apple's income statement is significant for several reasons. Firstly, it allows for a thorough assessment of the company's revenue sources, enabling analysts to evaluate its sales performance and revenue growth over time. Secondly, it helps assess Apple's profitability by examining gross profit, operating income, and net income, providing an understanding of the company's ability to generate profits and maintain healthy margins. Additionally, the income statement enables evaluation of Apple's expense management, cost control strategies, and resource efficiency. Comparisons with industry peers and historical data aid in benchmarking and tracking performance. Furthermore, the income statement is a foundation for forecasting, decision-making, financial planning, and investment analysis. Understanding and analyzing Apple's income statement is essential for assessing financial health, profitability, and growth potential.

Sample: Revenue Growth for Apple:

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

Analyst Grade: A

Section 2: Apple Inc. Balance Sheet Analyzed

A detailed examination of each significant line item is conducted in the analysis of Apple Inc.'s balance sheet. This involves defining Apple's balance sheet components, including cash, property, plant and equipment, and liabilities. Each line item is thoroughly reviewed to understand Apple's financial position comprehensively. Following the definition and discussion of each line item, a summary analysis of Apple's important balance sheet components is presented. This analysis offers valuable insights into the company's asset structure, liabilities, and overall financial health. By assessing the balance sheet line items, analysts can identify strengths, weaknesses, and potential areas of improvement within Apple's financial position. Analyzing Apple's balance sheet is crucial in evaluating the company's solvency, liquidity, and long-term stability.

Apple 2022 Summary Balance Sheet

Column1 2022 2021 2020 2019 2018
Cash                      23,646                  34,940                  38,016                  48,844                  25,913
Short Term Investment                      24,658                  27,699                  52,927                  51,713                  40,388
Account Receivable                      28,184                  26,278                  16,120                  22,926                  23,186
Inventory                        4,946                    6,580                    4,061                    4,106                    3,956
Other                              -                         -                         -                         -                         -
Current Assets                  135,405              134,836              143,713              162,819                93,443
Net PPE                      42,117                  39,440                  36,766                  37,378                  41,304
Goodwill                              -                         -                         -                         -                         -
Other                              -                         -
Total Assets                  352,755              351,002              323,888              338,516              365,725
Accounts Payable                      64,115                  54,763                  42,296                  46,236                  55,888
Accrued Expense                              -                         -                         -                         -                  32,687
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                        9,982                    6,000                    4,996                    5,980                  11,964
LT Debt - Current                      11,128                    9,613                    8,773                  10,260                    8,784
Other                         -                         -
Total Current Liabilities                    153,982                125,481                105,392                105,718                116,866
LT Debt                      98,959                109,106                  98,667                  91,807                  93,735
Total Liabilities                  302,083              287,912              258,549              248,028              258,578
Common Stock                      64,849                  57,365                  50,779                  45,174                  40,201
Treasury                              -                         -                         -                         -                         -
Retained Earnings                      (3,068)                    5,562                  14,966                  45,898                  70,400
Total Equity                    50,672                63,090                65,339                90,488              110,601
Total Equity & Liability                  352,755              351,002              323,888              338,516              365,725

Importance of Apple's Balance Sheet for Financial Analysis

Apple's balance sheet holds immense importance in financial analysis as it provides a snapshot of the company's financial position at a specific time. Understanding the significance of Apple's balance sheet is vital for several reasons. Firstly, it enables analysts to assess the company's liquidity and solvency by examining the composition of its assets and liabilities. This evaluation helps determine Apple's ability to meet short-term obligations and withstand financial challenges. Secondly, the balance sheet aids in assessing Apple's capital structure, highlighting the proportion of debt and equity financing. This information assists in evaluating the company's financial stability and risk profile. Furthermore, the balance sheet facilitates performance comparisons and trend analysis, allowing analysts to track Apple's financial position changes over time. Lastly, the balance sheet is a foundation for other financial metrics and ratios, providing valuable inputs for comprehensive financial analysis. Understanding Apple's balance sheet is essential for assessing its financial health, risk profile, and long-term sustainability.


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

Section 3: Apple Inc. Financial Ratios Analyzed

In Section 3, a comprehensive analysis of Apple Inc.'s financial ratios is conducted. This analysis focuses on several key financial ratios specifically chosen for Apple Inc. The section begins by providing clear definitions of each financial ratio selected. This ensures a thorough understanding of the ratio's purpose and calculation methodology.

Beginner's Guide to Financial Statements by Paul Borosky, MBA.
Beginner's Guide to Financial Statements

The financial formulas necessary for computing each specific ratio are then presented. This enables readers to apply the formulas to their own analysis or evaluation of Apple Inc. Finally, a concise analysis of Apple's important financial ratios is provided. This analysis highlights the significance of each ratio, offering insights into Apple's financial performance and position. By reviewing and understanding these financial ratios, stakeholders can make informed decisions and assessments regarding Apple Inc.'s financial health, efficiency, profitability, and overall success in the market.

Apple's Current Ratio:

Apple’s current ratio was 1.07 as of 2021.  This indicates the organization has sufficient short-term assets to cover short-term liabilities—an excellent position.

Analyst Grade: A

Importance of Apple's Current Ratio in Financial Analysis

The current ratio is a crucial financial ratio used to analyze Apple Inc.'s financial health. It provides valuable insights into the company's short-term liquidity and ability to meet its current obligations. For several reasons, understanding the importance of Apple's current ratio is vital for financial analysis. Firstly, it helps evaluate the company's working capital management and ability to cover short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position, signifying that Apple has sufficient resources to meet its short-term financial obligations. Secondly, it allows for comparisons with industry benchmarks and competitors, providing insights into Apple's relative liquidity position. Moreover, the trend analysis of the current ratio over time helps assess Apple's financial stability and short-term financial performance. By monitoring and interpreting the current ratio, stakeholders can make informed decisions regarding Apple's financial position, risk management, and operational efficiency.

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 excellently growing sales with fewer assets and controlling asset growth.

Analyst Grade: A

Importance of Apple's Return on Assets for Financial Analysis

Return on Assets (ROA) is a key financial ratio that holds significant importance in the financial analysis of Apple Inc. It measures the company's efficiency in generating profits relative to its total assets. Understanding the importance of Apple's Return on Assets is crucial for several reasons. Firstly, it provides insights into the effectiveness of Apple's asset utilization and management in generating profits. A higher ROA indicates that Apple utilizes its assets efficiently to generate income. Secondly, it allows for comparisons with industry peers and competitors, enabling stakeholders to evaluate Apple's performance relative to its competitors regarding asset efficiency. Moreover, trend analysis of ROA over time helps assess Apple's profitability and operational efficiency. By monitoring and analyzing Apple's Return on Assets, stakeholders can gain valuable insights into the company's financial performance, asset utilization, and profitability, assisting them in making informed decisions regarding investment, financial planning, and business strategies.