Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Apple Inc., profitability ratios
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apple Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apple Inc. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apple Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apple Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Apple Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Gross Profit Margin
Apple Inc., gross profit margin calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 169,148) | 170,782) | 152,836) | 104,956) | 98,392) | 101,839) | |
| Net sales | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | 265,595) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 44.13% | 43.31% | 41.78% | 38.23% | 37.82% | 38.34% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Arista Networks Inc. | 61.95% | 61.07% | 63.80% | 63.94% | 64.06% | — | |
| Cisco Systems Inc. | 62.73% | 62.55% | 64.02% | 64.26% | 62.94% | 62.04% | |
| Super Micro Computer Inc. | 18.01% | 15.40% | 15.03% | 15.76% | 14.16% | 12.80% | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 169,148 ÷ 383,285 = 44.13%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apple Inc. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023. |
Operating Profit Margin
Apple Inc., operating profit margin calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 114,301) | 119,437) | 108,949) | 66,288) | 63,930) | 70,898) | |
| Net sales | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | 265,595) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 29.82% | 30.29% | 29.78% | 24.15% | 24.57% | 26.69% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Arista Networks Inc. | 38.52% | 34.86% | 31.37% | 30.19% | 33.42% | — | |
| Cisco Systems Inc. | 26.37% | 27.09% | 25.76% | 27.63% | 27.39% | 24.95% | |
| Super Micro Computer Inc. | 10.68% | 6.45% | 3.48% | 2.57% | 2.78% | 2.82% | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | 29.20% | 29.70% | 29.10% | 24.49% | 24.86% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.32% | 28.47% | 28.76% | 24.95% | 25.42% | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 114,301 ÷ 383,285 = 29.82%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apple Inc. operating profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Net Profit Margin
Apple Inc., net profit margin calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 96,995) | 99,803) | 94,680) | 57,411) | 55,256) | 59,531) | |
| Net sales | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | 265,595) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 25.31% | 25.31% | 25.88% | 20.91% | 21.24% | 22.41% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Arista Networks Inc. | 35.62% | 30.87% | 28.52% | 27.38% | 35.67% | — | |
| Cisco Systems Inc. | 22.13% | 22.91% | 21.26% | 22.75% | 22.39% | 0.22% | |
| Super Micro Computer Inc. | 8.98% | 5.49% | 3.14% | 2.52% | 2.05% | 1.37% | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | 24.78% | 24.87% | 25.16% | 21.05% | 21.32% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 22.13% | 24.07% | 25.56% | 21.38% | 22.17% | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 96,995 ÷ 383,285 = 25.31%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apple Inc. net profit margin ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Return on Equity (ROE)
Apple Inc., ROE calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 96,995) | 99,803) | 94,680) | 57,411) | 55,256) | 59,531) | |
| Shareholders’ equity | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | 107,147) | |
| Profitability Ratio | |||||||
| ROE1 | 156.08% | 196.96% | 150.07% | 87.87% | 61.06% | 55.56% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Arista Networks Inc. | 28.91% | 27.68% | 21.13% | 19.11% | 29.71% | — | |
| Cisco Systems Inc. | 28.44% | 29.70% | 25.66% | 29.57% | 34.62% | 0.25% | |
| Super Micro Computer Inc. | 32.45% | 20.00% | 10.20% | 7.91% | 7.64% | 5.47% | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | 97.10% | 117.05% | 97.06% | 64.42% | 53.02% | — | |
| ROE, Industry | |||||||
| Information Technology | 31.93% | 38.69% | 42.56% | 35.29% | 36.68% | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 96,995 ÷ 62,146 = 156.08%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apple Inc. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Return on Assets (ROA)
Apple Inc., ROA calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 96,995) | 99,803) | 94,680) | 57,411) | 55,256) | 59,531) | |
| Total assets | 352,583) | 352,755) | 351,002) | 323,888) | 338,516) | 365,725) | |
| Profitability Ratio | |||||||
| ROA1 | 27.51% | 28.29% | 26.97% | 17.73% | 16.32% | 16.28% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Arista Networks Inc. | 20.98% | 19.96% | 14.66% | 13.39% | 20.54% | — | |
| Cisco Systems Inc. | 12.38% | 12.57% | 10.86% | 11.82% | 11.88% | 0.10% | |
| Super Micro Computer Inc. | 17.42% | 8.90% | 4.99% | 4.39% | 4.27% | 2.61% | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | 24.00% | 24.80% | 23.27% | 16.30% | 15.34% | — | |
| ROA, Industry | |||||||
| Information Technology | 13.10% | 15.14% | 15.65% | 12.15% | 12.80% | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 96,995 ÷ 352,583 = 27.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Apple Inc. ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |