Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Apple Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Federal	9,445)	7,890)	8,257)	6,306)	6,384)	41,425)
State	1,570)	1,519)	1,620)	455)	475)	551)
Foreign	8,750)	8,996)	9,424)	3,134)	3,962)	3,986)
Current	19,765)	18,405)	19,301)	9,895)	10,821)	45,962)
Federal	(3,644)	(2,265)	(7,176)	(3,619)	(2,939)	(33,819)
State	(49)	84)	(338)	21)	(67)	48)
Foreign	669)	3,076)	2,740)	3,383)	2,666)	1,181)
Deferred	(3,024)	895)	(4,774)	(215)	(340)	(32,590)
Provision for income taxes	16,741)	19,300)	14,527)	9,680)	10,481)	13,372)

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).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Apple Inc. current decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Apple Inc. deferred increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Apple Inc. provision for income taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Apple Inc., effective income tax rate (EITR) reconciliation

		Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
	Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	24.50%
	Effective tax rate	14.70%	16.20%	13.30%	14.40%	15.90%	18.30%

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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Apple Inc. effective tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Apple Inc., components of deferred tax assets and liabilities

US$ in millions

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Tax credit carryforwards	8,302)	6,962)	4,262)	797)	—)	—)
Accrued liabilities and other reserves	6,365)	6,515)	5,895)	4,934)	5,196)	3,151)
Capitalized research and development	6,294)	1,267)	—)	—)	—)	—)
Deferred revenue	4,571)	5,742)	5,399)	1,638)	1,372)	1,141)
Unrealized losses	2,447)	2,913)	—)	—)	—)	871)
Lease liabilities	2,421)	2,400)	2,406)	2,038)	—)	—)
Other	2,343)	1,825)	7,214)	9,929)	13,819)	1,447)
Deferred tax assets	32,743)	27,624)	25,176)	19,336)	20,387)	6,610)
Valuation allowance	(8,374)	(7,530)	(4,903)	(1,041)	(747)	—)
Deferred tax assets, net	24,369)	20,094)	20,273)	18,295)	19,640)	6,610)
Right-of-use assets	(2,179)	(2,163)	(2,167)	(1,862)	—)	—)
Depreciation	(1,998)	—)	—)	—)	—)	—)
Minimum tax on foreign earnings	(1,940)	(1,983)	(4,318)	(7,045)	(10,809)	—)
Unrealized gains	(511)	(942)	(203)	(526)	(186)	—)
Other	(490)	(469)	(512)	(705)	(600)	(776)
Deferred tax liabilities	(7,118)	(5,557)	(7,200)	(10,138)	(11,595)	(776)
Net deferred tax assets (liabilities)	17,251)	14,537)	13,073)	8,157)	8,045)	5,834)

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).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Apple Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Apple Inc. deferred tax assets, net decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Apple Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Apple Inc., deferred tax assets and liabilities, classification

US$ in millions

		Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
	Deferred tax assets	17,852)	15,375)	13,073)	8,157)	8,045)	5,834)
	Deferred tax liabilities	601)	838)	—)	—)	—)	—)

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).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Apple Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Apple Inc. deferred tax liabilities increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Apple Inc., adjustments to financial statements

US$ in millions

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Adjustment to Total Assets
Total assets (as reported)	352,583)	352,755)	351,002)	323,888)	338,516)	365,725)
Less: Noncurrent deferred tax assets, net	17,852)	15,375)	13,073)	8,157)	8,045)	5,834)
Total assets (adjusted)	334,731)	337,380)	337,929)	315,731)	330,471)	359,891)
Adjustment to Total Liabilities
Total liabilities (as reported)	290,437)	302,083)	287,912)	258,549)	248,028)	258,578)
Less: Noncurrent deferred tax liabilities, net	601)	838)	—)	—)	—)	—)
Total liabilities (adjusted)	289,836)	301,245)	287,912)	258,549)	248,028)	258,578)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	62,146)	50,672)	63,090)	65,339)	90,488)	107,147)
Less: Net deferred tax assets (liabilities)	17,251)	14,537)	13,073)	8,157)	8,045)	5,834)
Shareholders’ equity (adjusted)	44,895)	36,135)	50,017)	57,182)	82,443)	101,313)
Adjustment to Net Income
Net income (as reported)	96,995)	99,803)	94,680)	57,411)	55,256)	59,531)
Add: Deferred income tax expense (benefit)	(3,024)	895)	(4,774)	(215)	(340)	(32,590)
Net income (adjusted)	93,971)	100,698)	89,906)	57,196)	54,916)	26,941)

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).

Apple Inc., Financial Data: Reported vs. Adjusted

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Apple Inc., adjusted financial ratios

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
Net Profit Margin
Reported net profit margin	25.31%	25.31%	25.88%	20.91%	21.24%	22.41%
Adjusted net profit margin	24.52%	25.54%	24.58%	20.84%	21.11%	10.14%
Total Asset Turnover
Reported total asset turnover	1.09	1.12	1.04	0.85	0.77	0.73
Adjusted total asset turnover	1.15	1.17	1.08	0.87	0.79	0.74
Financial Leverage
Reported financial leverage	5.67	6.96	5.56	4.96	3.74	3.41
Adjusted financial leverage	7.46	9.34	6.76	5.52	4.01	3.55
Return on Equity (ROE)
Reported ROE	156.08%	196.96%	150.07%	87.87%	61.06%	55.56%
Adjusted ROE	209.31%	278.67%	179.75%	100.02%	66.61%	26.59%
Return on Assets (ROA)
Reported ROA	27.51%	28.29%	26.97%	17.73%	16.32%	16.28%
Adjusted ROA	28.07%	29.85%	26.60%	18.12%	16.62%	7.49%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Apple Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Apple Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Apple Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Apple Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Apple Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Apple Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	93,971)	100,698)	89,906)	57,196)	54,916)	26,941)
Net sales	383,285)	394,328)	365,817)	274,515)	260,174)	265,595)
Profitability Ratio
Adjusted net profit margin²	24.52%	25.54%	24.58%	20.84%	21.11%	10.14%

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).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 96,995 ÷ 383,285 = 25.31%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 93,971 ÷ 383,285 = 24.52%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Apple Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
As Reported
Selected Financial Data (US$ in millions)
Net sales	383,285)	394,328)	365,817)	274,515)	260,174)	265,595)
Total assets	352,583)	352,755)	351,002)	323,888)	338,516)	365,725)
Activity Ratio
Total asset turnover¹	1.09	1.12	1.04	0.85	0.77	0.73
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	383,285)	394,328)	365,817)	274,515)	260,174)	265,595)
Adjusted total assets	334,731)	337,380)	337,929)	315,731)	330,471)	359,891)
Activity Ratio
Adjusted total asset turnover²	1.15	1.17	1.08	0.87	0.79	0.74

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).

2023 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 383,285 ÷ 352,583 = 1.09

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 383,285 ÷ 334,731 = 1.15

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Apple Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
As Reported
Selected Financial Data (US$ in millions)
Total assets	352,583)	352,755)	351,002)	323,888)	338,516)	365,725)
Shareholders’ equity	62,146)	50,672)	63,090)	65,339)	90,488)	107,147)
Solvency Ratio
Financial leverage¹	5.67	6.96	5.56	4.96	3.74	3.41
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	334,731)	337,380)	337,929)	315,731)	330,471)	359,891)
Adjusted shareholders’ equity	44,895)	36,135)	50,017)	57,182)	82,443)	101,313)
Solvency Ratio
Adjusted financial leverage²	7.46	9.34	6.76	5.52	4.01	3.55

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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 352,583 ÷ 62,146 = 5.67

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 334,731 ÷ 44,895 = 7.46

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Apple Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	93,971)	100,698)	89,906)	57,196)	54,916)	26,941)
Adjusted shareholders’ equity	44,895)	36,135)	50,017)	57,182)	82,443)	101,313)
Profitability Ratio
Adjusted ROE²	209.31%	278.67%	179.75%	100.02%	66.61%	26.59%

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).

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 96,995 ÷ 62,146 = 156.08%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 93,971 ÷ 44,895 = 209.31%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Apple Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019	Sep 29, 2018
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	93,971)	100,698)	89,906)	57,196)	54,916)	26,941)
Adjusted total assets	334,731)	337,380)	337,929)	315,731)	330,471)	359,891)
Profitability Ratio
Adjusted ROA²	28.07%	29.85%	26.60%	18.12%	16.62%	7.49%

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).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 96,995 ÷ 352,583 = 27.51%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 93,971 ÷ 334,731 = 28.07%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Apple Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Apple Inc. (NASDAQ:AAPL)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Apple Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Apple Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)