Adjusted Ratios
Difficulty: Advanced
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Adjusted Ratios (Summary)
Apple Inc., adjusted ratios
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Activity | |||||||
Total Asset Turnover | |||||||
| Reported | 0.61 | 0.67 | 0.80 | 0.79 | 0.83 | 0.89 |
| Adjusted | 0.60 | 0.65 | 0.79 | 0.78 | 0.82 | 0.88 |
Liquidity | |||||||
Current Ratio | |||||||
| Reported | 1.28 | 1.35 | 1.11 | 1.08 | 1.68 | 1.50 |
| Adjusted | 1.38 | 1.51 | 1.25 | 1.25 | 2.03 | 1.77 |
Solvency | |||||||
Debt to Equity | |||||||
| Reported | 0.86 | 0.68 | 0.54 | 0.32 | 0.14 | – |
| Adjusted | 0.70 | 0.57 | 0.46 | 0.28 | 0.14 | 0.03 |
Debt to Capital | |||||||
| Reported | 0.46 | 0.40 | 0.35 | 0.24 | 0.12 | – |
| Adjusted | 0.41 | 0.36 | 0.31 | 0.22 | 0.13 | 0.03 |
Financial Leverage | |||||||
| Reported | 2.80 | 2.51 | 2.43 | 2.08 | 1.68 | 1.49 |
| Adjusted | 2.18 | 1.99 | 1.93 | 1.66 | 1.42 | 1.30 |
Profitability | |||||||
Net Profit Margin | |||||||
| Reported | 21.09% | 21.19% | 22.85% | 21.61% | 21.67% | 26.67% |
| Adjusted | 23.20% | 22.87% | 23.43% | 24.99% | 23.20% | 31.04% |
Return on Equity (ROE) | |||||||
| Reported | 36.07% | 35.62% | 44.74% | 35.42% | 29.98% | 35.30% |
| Adjusted | 30.15% | 29.69% | 35.94% | 32.33% | 26.85% | 35.48% |
Return on Assets (ROA) | |||||||
| Reported | 12.88% | 14.20% | 18.38% | 17.04% | 17.89% | 23.70% |
| Adjusted | 13.83% | 14.91% | 18.58% | 19.46% | 18.92% | 27.39% |
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 2015 to 2016 and from 2016 to 2017. |
Adjusted current ratio | A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. | Apple Inc.'s adjusted current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
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 2015 to 2016 and from 2016 to 2017. |
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 2015 to 2016 and from 2016 to 2017. |
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 2015 to 2016 and from 2016 to 2017. |
Adjusted net profit margin | An indicator of profitability, calculated as adjusted comprehensive income divided by total revenue. | Apple Inc.'s adjusted net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Adjusted ROE | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. | Apple Inc.'s adjusted ROE deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Adjusted ROA | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total assets. | Apple Inc.'s adjusted ROA deteriorated from 2015 to 2016 and from 2016 to 2017. |
Adjusted Total Asset Turnover
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Net sales | 229,234 | 215,639 | 233,715 | 182,795 | 170,910 | 156,508 |
| Total assets | 375,319 | 321,686 | 290,479 | 231,839 | 207,000 | 176,064 |
Ratio | |||||||
| Total asset turnover^{1} | 0.61 | 0.67 | 0.80 | 0.79 | 0.83 | 0.89 |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted net sales^{2} | 228,608 | 214,085 | 234,757 | 184,257 | 172,369 | 159,332 |
| Adjusted total assets^{3} | 383,446 | 328,279 | 296,133 | 236,634 | 211,421 | 180,576 |
Ratio | |||||||
| Adjusted total asset turnover^{4} | 0.60 | 0.65 | 0.79 | 0.78 | 0.82 | 0.88 |
2017 Calculations
^{1} Total asset turnover = Net sales ÷ Total assets
= 229,234 ÷ 375,319 = 0.61
^{2} Adjusted net sales. See Details »
^{3} Adjusted total assets. See Details »
^{4} Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 228,608 ÷ 383,446 = 0.60
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 2015 to 2016 and from 2016 to 2017. |
Adjusted Current Ratio
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Current assets | 128,645 | 106,869 | 89,378 | 68,531 | 73,286 | 57,653 |
| Current liabilities | 100,814 | 79,006 | 80,610 | 63,448 | 43,658 | 38,542 |
Ratio | |||||||
| Current ratio^{1} | 1.28 | 1.35 | 1.11 | 1.08 | 1.68 | 1.50 |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted current assets^{2} | 128,703 | 106,922 | 89,460 | 68,617 | 73,385 | 57,751 |
| Adjusted current liabilities^{3} | 93,266 | 70,926 | 71,670 | 54,957 | 36,223 | 32,589 |
Ratio | |||||||
| Adjusted current ratio^{4} | 1.38 | 1.51 | 1.25 | 1.25 | 2.03 | 1.77 |
2017 Calculations
^{1} Current ratio = Current assets ÷ Current liabilities
= 128,645 ÷ 100,814 = 1.28
^{2} Adjusted current assets. See Details »
^{3} Adjusted current liabilities. See Details »
^{4} Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 128,703 ÷ 93,266 = 1.38
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 2015 to 2016 but then slightly deteriorated from 2016 to 2017. |
Adjusted Debt to Equity
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Total debt | 115,680 | 87,032 | 64,462 | 35,295 | 16,960 | – |
| Shareholders' equity | 134,047 | 128,249 | 119,355 | 111,547 | 123,549 | 118,210 |
Ratio | |||||||
| Debt to equity^{1} | 0.86 | 0.68 | 0.54 | 0.32 | 0.14 | – |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted total debt^{2} | 123,749 | 93,572 | 70,034 | 40,004 | 21,282 | 4,414 |
| Adjusted shareholders' equity^{3} | 175,911 | 164,920 | 153,041 | 142,434 | 148,957 | 139,415 |
Ratio | |||||||
| Adjusted debt to equity^{4} | 0.70 | 0.57 | 0.46 | 0.28 | 0.14 | 0.03 |
2017 Calculations
^{1} Debt to equity = Total debt ÷ Shareholders' equity
= 115,680 ÷ 134,047 = 0.86
^{2} Adjusted total debt. See Details »
^{3} Adjusted shareholders' equity. See Details »
^{4} Adjusted debt to equity = Adjusted total debt ÷ Adjusted shareholders' equity
= 123,749 ÷ 175,911 = 0.70
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 2015 to 2016 and from 2016 to 2017. |
Adjusted Debt to Capital
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Total debt | 115,680 | 87,032 | 64,462 | 35,295 | 16,960 | – |
| Total capital | 249,727 | 215,281 | 183,817 | 146,842 | 140,509 | 118,210 |
Ratio | |||||||
| Debt to capital^{1} | 0.46 | 0.40 | 0.35 | 0.24 | 0.12 | – |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted total debt^{2} | 123,749 | 93,572 | 70,034 | 40,004 | 21,282 | 4,414 |
| Adjusted total capital^{3} | 299,660 | 258,492 | 223,075 | 182,438 | 170,239 | 143,829 |
Ratio | |||||||
| Adjusted debt to capital^{4} | 0.41 | 0.36 | 0.31 | 0.22 | 0.13 | 0.03 |
2017 Calculations
^{1} Debt to capital = Total debt ÷ Total capital
= 115,680 ÷ 249,727 = 0.46
^{2} Adjusted total debt. See Details »
^{3} Adjusted total capital. See Details »
^{4} Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 123,749 ÷ 299,660 = 0.41
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 2015 to 2016 and from 2016 to 2017. |
Adjusted Financial Leverage
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Total assets | 375,319 | 321,686 | 290,479 | 231,839 | 207,000 | 176,064 |
| Shareholders' equity | 134,047 | 128,249 | 119,355 | 111,547 | 123,549 | 118,210 |
Ratio | |||||||
| Financial leverage^{1} | 2.80 | 2.51 | 2.43 | 2.08 | 1.68 | 1.49 |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted total assets^{2} | 383,446 | 328,279 | 296,133 | 236,634 | 211,421 | 180,576 |
| Adjusted shareholders' equity^{3} | 175,911 | 164,920 | 153,041 | 142,434 | 148,957 | 139,415 |
Ratio | |||||||
| Adjusted financial leverage^{4} | 2.18 | 1.99 | 1.93 | 1.66 | 1.42 | 1.30 |
2017 Calculations
^{1} Financial leverage = Total assets ÷ Shareholders' equity
= 375,319 ÷ 134,047 = 2.80
^{2} Adjusted total assets. See Details »
^{3} Adjusted shareholders' equity. See Details »
^{4} Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders' equity
= 383,446 ÷ 175,911 = 2.18
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 2015 to 2016 and from 2016 to 2017. |
Adjusted Net Profit Margin
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Net income | 48,351 | 45,687 | 53,394 | 39,510 | 37,037 | 41,733 |
| Net sales | 229,234 | 215,639 | 233,715 | 182,795 | 170,910 | 156,508 |
Ratio | |||||||
| Net profit margin^{1} | 21.09% | 21.19% | 22.85% | 21.61% | 21.67% | 26.67% |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted comprehensive income^{2} | 53,044 | 48,962 | 55,008 | 46,051 | 39,997 | 49,461 |
| Adjusted net sales^{3} | 228,608 | 214,085 | 234,757 | 184,257 | 172,369 | 159,332 |
Ratio | |||||||
| Adjusted net profit margin^{4} | 23.20% | 22.87% | 23.43% | 24.99% | 23.20% | 31.04% |
2017 Calculations
^{1} Net profit margin = 100 × Net income ÷ Net sales
= 100 × 48,351 ÷ 229,234 = 21.09%
^{2} Adjusted comprehensive income. See Details »
^{3} Adjusted net sales. See Details »
^{4} Adjusted net profit margin = 100 × Adjusted comprehensive income ÷ Adjusted net sales
= 100 × 53,044 ÷ 228,608 = 23.20%
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 deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level. |
Adjusted Return on Equity (ROE)
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Net income | 48,351 | 45,687 | 53,394 | 39,510 | 37,037 | 41,733 |
| Shareholders' equity | 134,047 | 128,249 | 119,355 | 111,547 | 123,549 | 118,210 |
Ratio | |||||||
| ROE^{1} | 36.07% | 35.62% | 44.74% | 35.42% | 29.98% | 35.30% |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted comprehensive income^{2} | 53,044 | 48,962 | 55,008 | 46,051 | 39,997 | 49,461 |
| Adjusted shareholders' equity^{3} | 175,911 | 164,920 | 153,041 | 142,434 | 148,957 | 139,415 |
Ratio | |||||||
| Adjusted ROE^{4} | 30.15% | 29.69% | 35.94% | 32.33% | 26.85% | 35.48% |
2017 Calculations
^{1} ROE = 100 × Net income ÷ Shareholders' equity
= 100 × 48,351 ÷ 134,047 = 36.07%
^{2} Adjusted comprehensive income. See Details »
^{3} Adjusted shareholders' equity. See Details »
^{4} Adjusted ROE = 100 × Adjusted comprehensive income ÷ Adjusted shareholders' equity
= 100 × 53,044 ÷ 175,911 = 30.15%
Ratio | Description | The company |
---|---|---|
Adjusted ROE | A profitability ratio calculated as adjusted comprehensive income divided by adjusted total equity. | Apple Inc.'s adjusted ROE deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017. |
Adjusted Return on Assets (ROA)
Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | Sep 27, 2014 | Sep 28, 2013 | Sep 29, 2012 | ||
---|---|---|---|---|---|---|---|
Reported | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Net income | 48,351 | 45,687 | 53,394 | 39,510 | 37,037 | 41,733 |
| Total assets | 375,319 | 321,686 | 290,479 | 231,839 | 207,000 | 176,064 |
Ratio | |||||||
| ROA^{1} | 12.88% | 14.20% | 18.38% | 17.04% | 17.89% | 23.70% |
Adjusted | |||||||
Selected Financial Data (USD $ in millions) | |||||||
| Adjusted comprehensive income^{2} | 53,044 | 48,962 | 55,008 | 46,051 | 39,997 | 49,461 |
| Adjusted total assets^{3} | 383,446 | 328,279 | 296,133 | 236,634 | 211,421 | 180,576 |
Ratio | |||||||
| Adjusted ROA^{4} | 13.83% | 14.91% | 18.58% | 19.46% | 18.92% | 27.39% |
2017 Calculations
^{1} ROA = 100 × Net income ÷ Total assets
= 100 × 48,351 ÷ 375,319 = 12.88%
^{2} Adjusted comprehensive income. See Details »
^{3} Adjusted total assets. See Details »
^{4} Adjusted ROA = 100 × Adjusted comprehensive income ÷ Adjusted total assets
= 100 × 53,044 ÷ 383,446 = 13.83%
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 2015 to 2016 and from 2016 to 2017. |