Common-Size Income Statement
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- Income Statement
- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Apple Inc., common-size consolidated income statement
Based on: 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), 10-K (reporting date: 2019-09-28).
The analysis of the annual financial data reveals several notable trends and patterns over the periods observed.
- Sales Composition
- The contribution of products to net sales shows a gradual decline, decreasing from 82.21% in 2019 to 75.41% in 2024. Conversely, services have steadily increased their share from 17.79% to 24.59% over the same time frame. This indicates a strategic shift towards expanding service offerings relative to product sales.
- Cost of Sales
- The cost of sales as a percentage of net sales has shown a consistent downward trend, improving from -62.18% in 2019 to -53.79% in 2024. Both products and services costs as a percentage of net sales are decreasing, reflecting enhanced operational efficiencies or cost controls.
- Gross Margin
- Gross margin has improved steadily from 37.82% in 2019 to 46.21% in 2024, aligning with the reduction in cost of sales. This improvement in gross margin suggests more effective management of production and service delivery costs, contributing positively to profitability.
- Operating Expenses
- Research and development expenses fluctuate, initially decreasing from -6.23% to -5.99% in 2021 but subsequently rising to -8.02% in 2024, indicating increased investment in innovation or product development recently. Selling, general and administrative expenses remain relatively stable, with a slight increase from -7.01% to -6.67%. Overall operating expenses show a mild increase from -13.25% in 2019 to -14.7% in 2024, reflecting increased spending particularly on R&D.
- Operating Income
- Operating income as a percentage of net sales has generally improved, rising from 24.57% in 2019 to 31.51% in 2024. Despite minor fluctuations, the upward trend signifies stronger core profitability and efficient expense management.
- Interest and Other Income/Expenses
- Interest and dividend income shows a declining trend, decreasing from 1.91% in 2019 to 0.98% in 2023, with no data reported for 2024. Interest expense follows a similar declining pattern from -1.37% to -1.03%. Net other income and expenses have minimal impact and fluctuate near zero, indicating limited effects on overall profitability.
- Income Before Provision for Income Taxes
- This metric closely follows operating income trends, rising from 25.27% in 2019 to 31.58% in 2024, confirming the strengthening profitability before tax considerations.
- Provision for Income Taxes
- The provision for income taxes shows some variability, initially decreasing from -4.03% in 2019 to -3.53% in 2020, then increasing to -7.61% in 2024. This increase in tax provision in the latest period could have implications for net income margins.
- Net Income
- Net income as a percentage of net sales displays an improvement from 21.24% in 2019 to a peak of 25.88% in 2021, followed by a slight decline to 23.97% in 2024. This indicates overall profitability growth, tempered slightly in the most recent year potentially due to increased tax expense.