Stock Analysis on Net
Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Apple Inc., adjustment to net income

US$ in millions

Microsoft Excel
12 months ended: Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Net income (as reported) 96,995 99,803 94,680 57,411 55,256 59,531
Add: Change in unrealized gains (losses) on marketable debt securities, net of tax 1,816 (11,899) (967) 1,139 3,827 (3,406)
Net income (adjusted) 98,811 87,904 93,713 58,550 59,083 56,125

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Apple Inc., adjusted profitability ratios

Microsoft Excel
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 25.78% 22.29% 25.62% 21.33% 22.71% 21.13%
Return on Equity (ROE)
Reported ROE 156.08% 196.96% 150.07% 87.87% 61.06% 55.56%
Adjusted ROE 159.00% 173.48% 148.54% 89.61% 65.29% 52.38%
Return on Assets (ROA)
Reported ROA 27.51% 28.29% 26.97% 17.73% 16.32% 16.28%
Adjusted ROA 28.02% 24.92% 26.70% 18.08% 17.45% 15.35%

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
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Apple Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by 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 total assets. Apple Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Apple Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 98,811 87,904 93,713 58,550 59,083 56,125
Net sales 383,285 394,328 365,817 274,515 260,174 265,595
Profitability Ratio
Adjusted net profit margin2 25.78% 22.29% 25.62% 21.33% 22.71% 21.13%

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 × 98,811 ÷ 383,285 = 25.78%

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

Adjusted Return on Equity (ROE)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 98,811 87,904 93,713 58,550 59,083 56,125
Shareholders’ equity 62,146 50,672 63,090 65,339 90,488 107,147
Profitability Ratio
Adjusted ROE2 159.00% 173.48% 148.54% 89.61% 65.29% 52.38%

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 ÷ Shareholders’ equity
= 100 × 98,811 ÷ 62,146 = 159.00%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 98,811 87,904 93,713 58,550 59,083 56,125
Total assets 352,583 352,755 351,002 323,888 338,516 365,725
Profitability Ratio
Adjusted ROA2 28.02% 24.92% 26.70% 18.08% 17.45% 15.35%

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 ÷ Total assets
= 100 × 98,811 ÷ 352,583 = 28.02%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Apple Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.