Microsoft Excel LibreOffice Calc

Apple Inc. (AAPL)


Adjusted Ratios

Difficulty: Advanced


Adjusted Ratios (Summary)

Apple Inc., adjusted ratios

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Activity
Total Asset Turnover
Reported 0.73 0.61 0.67 0.80 0.79 0.83
Adjusted 0.71 0.60 0.65 0.79 0.78 0.82
Liquidity
Current Ratio
Reported 1.12 1.28 1.35 1.11 1.08 1.68
Adjusted 1.20 1.38 1.51 1.25 1.25 2.02
Solvency
Debt to Equity
Reported 1.07 0.86 0.68 0.54 0.32 0.14
Adjusted 1.06 0.70 0.57 0.46 0.28 0.14
Debt to Capital
Reported 0.52 0.46 0.40 0.35 0.24 0.12
Adjusted 0.51 0.41 0.36 0.31 0.22 0.13
Financial Leverage
Reported 3.41 2.80 2.51 2.43 2.08 1.68
Adjusted 3.24 2.18 1.99 1.94 1.66 1.42
Profitability
Net Profit Margin
Reported 22.41% 21.09% 21.19% 22.85% 21.61% 21.67%
Adjusted 8.94% 23.20% 22.88% 23.43% 25.00% 23.20%
Return on Equity (ROE)
Reported 55.56% 36.07% 35.62% 44.74% 35.42% 29.98%
Adjusted 20.57% 30.16% 29.70% 35.97% 32.36% 26.87%
Return on Assets (ROA)
Reported 16.28% 12.88% 14.20% 18.38% 17.04% 17.89%
Adjusted 6.35% 13.83% 14.92% 18.58% 19.47% 18.93%

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Apple Inc.’s adjusted current ratio deteriorated from 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 and from 2017 to 2018.
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 increased from 2016 to 2017 and from 2017 to 2018.
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Apple Inc.’s adjusted net profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. Apple Inc.’s adjusted ROE improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. Apple Inc.’s adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.

Apple Inc., Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Net sales 265,595  229,234  215,639  233,715  182,795  170,910 
Total assets 365,725  375,319  321,686  290,479  231,839  207,000 
Ratio
Total asset turnover1 0.73 0.61 0.67 0.80 0.79 0.83
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net sales2 265,551  228,608  214,085  234,757  184,257  172,369 
Adjusted total assets3 373,698  383,388  328,226  296,051  236,548  211,322 
Ratio
Adjusted total asset turnover4 0.71 0.60 0.65 0.79 0.78 0.82

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 Total asset turnover = Net sales ÷ Total assets
= 265,595 ÷ 365,725 = 0.73

2 Adjusted net sales. See Details »

3 Adjusted total assets. See Details »

4 Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 265,551 ÷ 373,698 = 0.71

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Adjusted Current Ratio

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Current assets 131,339  128,645  106,869  89,378  68,531  73,286 
Current liabilities 116,866  100,814  79,006  80,610  63,448  43,658 
Ratio
Current ratio1 1.12 1.28 1.35 1.11 1.08 1.68
Adjusted
Selected Financial Data (USD $ in millions)
Current assets 131,339  128,645  106,869  89,378  68,531  73,286 
Adjusted current liabilities2 109,323  93,266  70,926  71,670  54,957  36,223 
Ratio
Adjusted current ratio3 1.20 1.38 1.51 1.25 1.25 2.02

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 131,339 ÷ 116,866 = 1.12

2 Adjusted current liabilities. See Details »

3 Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 131,339 ÷ 109,323 = 1.20

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 deteriorated from 2016 to 2017 and from 2017 to 2018.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Total debt 114,483  115,680  87,032  64,462  35,295  16,960 
Shareholders’ equity 107,147  134,047  128,249  119,355  111,547  123,549 
Ratio
Debt to equity1 1.07 0.86 0.68 0.54 0.32 0.14
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 122,456  123,749  93,572  70,034  40,004  21,282 
Adjusted shareholders’ equity3 115,345  175,853  164,867  152,959  142,348  148,858 
Ratio
Adjusted debt to equity4 1.06 0.70 0.57 0.46 0.28 0.14

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 Debt to equity = Total debt ÷ Shareholders’ equity
= 114,483 ÷ 107,147 = 1.07

2 Adjusted total debt. See Details »

3 Adjusted shareholders’ equity. See Details »

4 Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders’ equity
= 122,456 ÷ 115,345 = 1.06

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 2016 to 2017 and from 2017 to 2018.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Total debt 114,483  115,680  87,032  64,462  35,295  16,960 
Total capital 221,630  249,727  215,281  183,817  146,842  140,509 
Ratio
Debt to capital1 0.52 0.46 0.40 0.35 0.24 0.12
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total debt2 122,456  123,749  93,572  70,034  40,004  21,282 
Adjusted total capital3 237,801  299,602  258,439  222,993  182,352  170,140 
Ratio
Adjusted debt to capital4 0.51 0.41 0.36 0.31 0.22 0.13

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 Debt to capital = Total debt ÷ Total capital
= 114,483 ÷ 221,630 = 0.52

2 Adjusted total debt. See Details »

3 Adjusted total capital. See Details »

4 Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 122,456 ÷ 237,801 = 0.51

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 2016 to 2017 and from 2017 to 2018.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Total assets 365,725  375,319  321,686  290,479  231,839  207,000 
Shareholders’ equity 107,147  134,047  128,249  119,355  111,547  123,549 
Ratio
Financial leverage1 3.41 2.80 2.51 2.43 2.08 1.68
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted total assets2 373,698  383,388  328,226  296,051  236,548  211,322 
Adjusted shareholders’ equity3 115,345  175,853  164,867  152,959  142,348  148,858 
Ratio
Adjusted financial leverage4 3.24 2.18 1.99 1.94 1.66 1.42

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 365,725 ÷ 107,147 = 3.41

2 Adjusted total assets. See Details »

3 Adjusted shareholders’ equity. See Details »

4 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 373,698 ÷ 115,345 = 3.24

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 increased from 2016 to 2017 and from 2017 to 2018.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Net income 59,531  48,351  45,687  53,394  39,510  37,037 
Net sales 265,595  229,234  215,639  233,715  182,795  170,910 
Ratio
Net profit margin1 22.41% 21.09% 21.19% 22.85% 21.61% 21.67%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income2 23,729  53,039  48,972  55,012  46,064  39,996 
Adjusted net sales3 265,551  228,608  214,085  234,757  184,257  172,369 
Ratio
Adjusted net profit margin4 8.94% 23.20% 22.88% 23.43% 25.00% 23.20%

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 Net profit margin = 100 × Net income ÷ Net sales
= 100 × 59,531 ÷ 265,595 = 22.41%

2 Adjusted net income. See Details »

3 Adjusted net sales. See Details »

4 Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 23,729 ÷ 265,551 = 8.94%

Ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. Apple Inc.’s adjusted net profit margin improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Net income 59,531  48,351  45,687  53,394  39,510  37,037 
Shareholders’ equity 107,147  134,047  128,249  119,355  111,547  123,549 
Ratio
ROE1 55.56% 36.07% 35.62% 44.74% 35.42% 29.98%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income2 23,729  53,039  48,972  55,012  46,064  39,996 
Adjusted shareholders’ equity3 115,345  175,853  164,867  152,959  142,348  148,858 
Ratio
Adjusted ROE4 20.57% 30.16% 29.70% 35.97% 32.36% 26.87%

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 59,531 ÷ 107,147 = 55.56%

2 Adjusted net income. See Details »

3 Adjusted shareholders’ equity. See Details »

4 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 23,729 ÷ 115,345 = 20.57%

Ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. Apple Inc.’s adjusted ROE improved from 2016 to 2017 but then deteriorated significantly from 2017 to 2018.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Reported
Selected Financial Data (USD $ in millions)
Net income 59,531  48,351  45,687  53,394  39,510  37,037 
Total assets 365,725  375,319  321,686  290,479  231,839  207,000 
Ratio
ROA1 16.28% 12.88% 14.20% 18.38% 17.04% 17.89%
Adjusted
Selected Financial Data (USD $ in millions)
Adjusted net income2 23,729  53,039  48,972  55,012  46,064  39,996 
Adjusted total assets3 373,698  383,388  328,226  296,051  236,548  211,322 
Ratio
Adjusted ROA4 6.35% 13.83% 14.92% 18.58% 19.47% 18.93%

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

2018 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 59,531 ÷ 365,725 = 16.28%

2 Adjusted net income. See Details »

3 Adjusted total assets. See Details »

4 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 23,729 ÷ 373,698 = 6.35%

Ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. Apple Inc.’s adjusted ROA deteriorated from 2016 to 2017 and from 2017 to 2018.