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