Stock Analysis on Net
Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

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Common-Size Income Statement

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Apple Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Sep 27, 2025 Sep 28, 2024 Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020
Products
Services
Net sales
Products
Services
Cost of sales
Gross margin
Research and development
Selling, general and administrative
Operating expenses
Operating income
Interest and dividend income
Interest expense
Other income (expense), net
Other income (expense), net
Income before provision for income taxes
Provision for income taxes
Net income

Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 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).

The financial data reveals several notable trends in the company’s performance and cost structure over the observed periods.

Revenue Composition
The proportion of net sales attributed to products has been decreasing steadily from 80.41% to 73.77%, while services have correspondingly increased from 19.59% to 26.23%. This indicates a strategic shift towards a greater emphasis on services in the revenue mix.
Cost of Sales
The cost of sales as a percentage of net sales has shown a continuous decline, falling from -61.77% to -53.09%. Both products and services costs as a percentage of net sales have decreased, with product costs dropping from -55.11% to -46.64% and service costs remaining relatively stable around -6.5%. This improvement suggests better cost efficiency or favorable pricing adjustments over time.
Gross Margin
Gross margin has steadily improved, increasing from 38.23% to 46.91%. This trend aligns with the reduction in cost of sales and reflects enhanced profitability at the gross level.
Operating Expenses
Research and development expenses as a percentage of net sales have generally increased, moving from -6.83% to -8.3%, indicating increased investment in innovation. Selling, general, and administrative expenses have remained relatively stable, fluctuating slightly around -6.5%. Overall operating expenses have increased modestly from -14.09% to -14.93%, suggesting controlled spending despite growth in R&D.
Operating Income
Operating income as a percentage of net sales has improved from 24.15% to 31.97%, reflecting the combined effects of improved gross margin and controlled operating expenses.
Interest and Other Income/Expense
Interest and dividend income showed a decline initially and was not reported for the last two periods. Interest expense remained relatively low and stable but also unreported in the most recent periods. Other income (expense), net, fluctuated modestly around zero with no clear trend.
Income Before Taxes and Provision
Income before provision for income taxes tracked closely with operating income, increasing from 24.44% to 31.89%. However, the provision for income taxes exhibited volatility, with a notable increase to -7.61% in the second-to-last period before decreasing to -4.98% in the most recent period.
Net Income
Net income as a percentage of net sales improved from 20.91% to 26.92% over the timeframe. Despite some variation, particularly a dip in one period to 23.97%, the overall trend indicates enhanced profitability after taxes.