Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Apple Inc. (NASDAQ:AAPL)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Apple Inc., adjusted financial ratios

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Activity Ratio
Total Asset Turnover
Reported 0.85 0.77 0.73 0.61 0.67 0.80
Adjusted 0.88 0.77 0.72 0.60 0.65 0.79
Liquidity Ratio
Current Ratio
Reported 1.36 1.54 1.12 1.28 1.35 1.11
Adjusted 1.46 1.63 1.20 1.38 1.51 1.25
Solvency Ratios
Debt to Equity
Reported 1.72 1.19 1.07 0.86 0.68 0.54
Adjusted 1.72 1.24 1.06 0.70 0.57 0.46
Debt to Capital
Reported 0.63 0.54 0.52 0.46 0.40 0.35
Adjusted 0.63 0.55 0.51 0.41 0.36 0.31
Financial Leverage
Reported 4.96 3.74 3.41 2.80 2.51 2.43
Adjusted 4.46 3.60 3.19 2.18 1.99 1.94
Profitability Ratios
Net Profit Margin
Reported 20.91% 21.24% 22.41% 21.09% 21.19% 22.85%
Adjusted 21.37% 21.92% 8.94% 23.20% 22.88% 23.43%
Return on Equity (ROE)
Reported 87.87% 61.06% 55.56% 36.07% 35.62% 44.74%
Adjusted 83.58% 60.43% 20.57% 30.16% 29.70% 35.97%
Return on Assets (ROA)
Reported 17.73% 16.32% 16.28% 12.88% 14.20% 18.38%
Adjusted 18.73% 16.78% 6.45% 13.83% 14.92% 18.58%

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Apple Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Apple Inc.’s adjusted current ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Apple Inc.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Apple Inc.’s adjusted debt-to-capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Apple Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Apple Inc.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Apple Inc.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.

Apple Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Net sales 274,515  260,174  265,595  229,234  215,639  233,715 
Total assets 323,888  338,516  365,725  375,319  321,686  290,479 
Activity Ratio
Total asset turnover1 0.85 0.77 0.73 0.61 0.67 0.80
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net sales2 276,615  259,474  265,551  228,608  214,085  234,757 
Adjusted total assets3 315,731  339,006  367,864  383,388  328,226  296,051 
Activity Ratio
Adjusted total asset turnover4 0.88 0.77 0.72 0.60 0.65 0.79

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Total asset turnover = Net sales ÷ Total assets
= 274,515 ÷ 323,888 = 0.85

2 Adjusted net sales. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 276,615 ÷ 315,731 = 0.88

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Apple Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Current assets 143,713  162,819  131,339  128,645  106,869  89,378 
Current liabilities 105,392  105,718  116,866  100,814  79,006  80,610 
Liquidity Ratio
Current ratio1 1.36 1.54 1.12 1.28 1.35 1.11
Adjusted
Selected Financial Data (US$ in millions)
Current assets 143,713  162,819  131,339  128,645  106,869  89,378 
Adjusted current liabilities2 98,749  100,196  109,323  93,266  70,926  71,670 
Liquidity Ratio
Adjusted current ratio3 1.46 1.63 1.20 1.38 1.51 1.25

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 143,713 ÷ 105,392 = 1.36

2 Adjusted current liabilities. See details »

3 2020 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 143,713 ÷ 98,749 = 1.46

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Apple Inc.’s adjusted current ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Solvency Ratio
Debt to equity1 1.72 1.19 1.07 0.86 0.68 0.54
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 121,617  116,582  122,456  123,749  93,572  70,034 
Adjusted shareholders’ equity3 70,736  94,113  115,345  175,853  164,867  152,959 
Solvency Ratio
Adjusted debt to equity4 1.72 1.24 1.06 0.70 0.57 0.46

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 112,436 ÷ 65,339 = 1.72

2 Adjusted total debt. See details »

3 Adjusted shareholders’ equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 121,617 ÷ 70,736 = 1.72

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Apple Inc.’s adjusted debt-to-equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
Total capital 177,775  198,535  221,630  249,727  215,281  183,817 
Solvency Ratio
Debt to capital1 0.63 0.54 0.52 0.46 0.40 0.35
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 121,617  116,582  122,456  123,749  93,572  70,034 
Adjusted total capital3 192,353  210,695  237,801  299,602  258,439  222,993 
Solvency Ratio
Adjusted debt to capital4 0.63 0.55 0.51 0.41 0.36 0.31

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 112,436 ÷ 177,775 = 0.63

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 121,617 ÷ 192,353 = 0.63

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Apple Inc.’s adjusted debt-to-capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Total assets 323,888  338,516  365,725  375,319  321,686  290,479 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Solvency Ratio
Financial leverage1 4.96 3.74 3.41 2.80 2.51 2.43
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 315,731  339,006  367,864  383,388  328,226  296,051 
Adjusted shareholders’ equity3 70,736  94,113  115,345  175,853  164,867  152,959 
Solvency Ratio
Adjusted financial leverage4 4.46 3.60 3.19 2.18 1.99 1.94

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 323,888 ÷ 65,339 = 4.96

2 Adjusted total assets. See details »

3 Adjusted shareholders’ equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 315,731 ÷ 70,736 = 4.46

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.’s adjusted financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Net sales 274,515  260,174  265,595  229,234  215,639  233,715 
Profitability Ratio
Net profit margin1 20.91% 21.24% 22.41% 21.09% 21.19% 22.85%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 59,122  56,875  23,729  53,039  48,972  55,012 
Adjusted net sales3 276,615  259,474  265,551  228,608  214,085  234,757 
Profitability Ratio
Adjusted net profit margin4 21.37% 21.92% 8.94% 23.20% 22.88% 23.43%

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 57,411 ÷ 274,515 = 20.91%

2 Adjusted net income. See details »

3 Adjusted net sales. See details »

4 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 59,122 ÷ 276,615 = 21.37%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Apple Inc.’s adjusted net profit margin ratio improved from 2018 to 2019 but then slightly deteriorated from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Profitability Ratio
ROE1 87.87% 61.06% 55.56% 36.07% 35.62% 44.74%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 59,122  56,875  23,729  53,039  48,972  55,012 
Adjusted shareholders’ equity3 70,736  94,113  115,345  175,853  164,867  152,959 
Profitability Ratio
Adjusted ROE4 83.58% 60.43% 20.57% 30.16% 29.70% 35.97%

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 57,411 ÷ 65,339 = 87.87%

2 Adjusted net income. See details »

3 Adjusted shareholders’ equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 59,122 ÷ 70,736 = 83.58%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Apple Inc.’s adjusted ROE improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Reported
Selected Financial Data (US$ in millions)
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Total assets 323,888  338,516  365,725  375,319  321,686  290,479 
Profitability Ratio
ROA1 17.73% 16.32% 16.28% 12.88% 14.20% 18.38%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 59,122  56,875  23,729  53,039  48,972  55,012 
Adjusted total assets3 315,731  339,006  367,864  383,388  328,226  296,051 
Profitability Ratio
Adjusted ROA4 18.73% 16.78% 6.45% 13.83% 14.92% 18.58%

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 57,411 ÷ 323,888 = 17.73%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 59,122 ÷ 315,731 = 18.73%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Apple Inc.’s adjusted ROA improved from 2018 to 2019 and from 2019 to 2020.