Apple Inc. (NASDAQ:AAPL)

The analysis of the financial ratios reveals several notable trends over the periods examined.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show an increasing trend from 2019 to 2022, peaking at 1.12 and 1.17 respectively, indicating improved efficiency in asset utilization. However, from 2022 to 2024, there is a slight decline, with values stabilizing around 1.07 to 1.14. This suggests a modest reduction in asset turnover efficiency in the most recent years.

Current Ratio

The current ratio, indicating short-term liquidity, steadily declines from 1.54 (reported) and 1.63 (adjusted) in 2019 to approximately 0.87-0.91 in 2024. This consistent decrease points to a weakening ability to cover short-term liabilities with current assets, potentially signaling increased liquidity risk.

Debt to Equity Ratio

An upward trajectory is observed in the debt to equity ratios, with reported figures rising from 1.19 in 2019 to 1.89 in 2024, and adjusted figures from 1.29 to 2.36 over the same period. The peak around 2.73 adjusted in 2022 denotes higher leverage, followed by a minor decrease but still elevated levels compared to 2019. This trend points to an increased reliance on debt financing relative to equity.

Debt to Capital Ratio

Debt to capital ratios gradually increase from 0.54 (reported) and 0.56 (adjusted) in 2019 to about 0.65-0.70 in 2024, with a slight dip in 2023. This confirms a growing proportion of debt within the company's capital structure, complementing the rising debt to equity figures.

Financial Leverage

Financial leverage ratios exhibit a substantial increase from 3.74 reported and adjusted in 2019 to peaks of 6.96 reported and 6.95 adjusted in 2022. Post-2022, a decrease to approximately 5.67 reported and 5.87 adjusted in 2023 is observed, followed by a renewed rise in 2024. This suggests fluctuating levels of leverage, with an overall upward trend indicative of greater use of borrowed funds in the capital base.

Net Profit Margin

Net profit margin percentages remain relatively stable with slight fluctuations, rising from approximately 21-22% in 2019 to a peak around 25-26% in 2021 and 2022, and then a modest decline to roughly 24% in 2024. The margins demonstrate solid profitability with minor recent compression.

Return on Equity (ROE)

ROE improves significantly, from around 61-63% in 2019 to a peak of about 197% reported and 185% adjusted in 2022. Thereafter, figures decline somewhat but remain elevated at 165-189% in 2024. Such high and fluctuating ROE values suggest highly effective use of equity capital, likely aided by increased leverage.

Return on Assets (ROA)

ROA steadily improves from approximately 16-17% in 2019 to around 26-28% by 2021-2023, with a slight decrease to about 26-28% in 2024. This indicates enhanced asset profitability over time, though recent years show minor stabilization or slight decline.

In summary, the data indicates improved operational efficiency and profitability across the periods analyzed, evidenced by rising asset turnover, net profit margins, ROA, and very strong ROE. However, these positive performance indicators coincide with increasing leverage levels and declining liquidity ratios, suggesting a shift towards greater financial risk. The company appears to have increased its use of debt relative to equity and current assets, enhancing returns but potentially increasing vulnerability to credit and liquidity pressures.

The financial data indicates a general upward trend in net sales over the six-year period, increasing from $260,174 million in 2019 to $391,035 million in 2024. Notably, the most significant year-over-year jump occurred between 2020 and 2021, where net sales rose from approximately $274,515 million to $365,817 million. However, a slight decline in net sales is observed in 2023, dropping to $383,285 million from $394,328 million in the previous year, followed by a modest recovery in 2024.

Total assets exhibit a fluctuating pattern, beginning at $338,516 million in 2019, dipping in 2020, then generally rising with some stability from 2021 through 2024, ending at $364,980 million. This indicates periods of asset optimization and investment balanced against stability in recent years.

The reported total asset turnover ratio shows continuous improvement from 0.77 in 2019 to a peak of 1.12 in 2022, reflecting enhanced efficiency in using assets to generate sales. Following this peak, the ratio slightly declines but remains above 1.0 in 2023 and 2024, indicating sustained asset utilization efficiency.

Adjusted figures parallel the reported data, affirming the trends. Adjusted net sales increase consistently from $259,474 million in 2019 to $391,735 million in 2024, with the same pattern of growth and slight fluctuation seen in reported sales. Adjusted total assets, however, follow a somewhat downward trend from 2019's $339,006 million to $334,731 million in 2023 before rising to $345,481 million in 2024, suggesting asset base adjustments that may reflect accounting revisions or reclassifications.

The adjusted total asset turnover ratio shows a steady increase from 0.77 in 2019 to 1.17 in 2022, peaking slightly higher than the reported ratio, indicating that after adjustments, asset turnover efficiency is assessed to be somewhat more favorable. Similar to the reported ratio, a minor decline is noted in 2023 and 2024, with levels maintaining above 1.1, consistent with strong asset utilization.

Overall, the data suggests a positive performance trend characterized by increasing sales and improving asset efficiency over the analyzed period. Despite minor fluctuations in certain years, the company appears to manage its assets effectively to support revenue growth steadily. The asset turnover ratios support the interpretation of operational improvements and efficient asset management throughout the time frame.

Net Sales

Consistent growth with a notable rise from 2020 to 2021, slight dip in 2023, recovery in 2024.

Total Assets

Fluctuated with a decline in 2020, recovery thereafter, and stabilization near the end of the period.

Total Asset Turnover Ratio

Improved significantly through 2022, slight decrease in subsequent years, maintaining strong efficiency.

Adjusted Figures

Parallel trends to reported data, with adjusted asset turnover indicating marginally better asset utilization.

The analysis of the financial data over the six-year period reveals notable trends in liquidity and short-term financial health. The current assets exhibit a general decline from 2019 to 2021, decreasing from 162,819 million US dollars to 134,836 million US dollars, followed by a modest recovery through 2024, reaching 152,987 million US dollars. This suggests an initial contraction in liquid assets that later stabilizes and improves moderately.

In contrast, current liabilities show an overall increasing trend, rising from 105,718 million US dollars in 2019 to 176,392 million US dollars in 2024. This steady growth in obligations indicates a potential rise in short-term financial commitments or operational leveraging over the years analyzed.

The reported current ratio, which measures the ability to cover current liabilities with current assets, portrays a declining trend from 1.54 in 2019 to 0.87 in 2024. The ratio falls below 1.0 from 2022 onward, suggesting a weakening liquidity position and reduced buffer to meet short-term debts from liquid assets.

Adjusted current liabilities, which might account for certain adjustments in the liability figures, follow a similar upward trajectory, increasing from 100,196 million US dollars to 168,143 million US dollars between 2019 and 2024. Correspondingly, the adjusted current ratio decreases from 1.63 to 0.91, mirroring the pattern observed in the reported current ratio but with slightly higher values consistently.

Overall, the company’s liquidity ratios indicate a diminishing capacity to cover current liabilities with current assets over the years analyzed. Despite some fluctuations in current assets, the marked increase in liabilities has exerted pressure on liquidity, reflected in the declining ratios. The movement below the critical threshold of 1.0 in recent years signals potential liquidity concerns, warranting attention to working capital management and short-term financial strategy.

Current Assets Trend

Declined from 2019 to 2021, followed by gradual recovery through 2024.

Current Liabilities Trend

Consistently increased across the period, indicating rising short-term obligations.

Reported Current Ratio

Decreased from a comfortable 1.54 to below 1.0 at 0.87, reflecting reduced liquidity.

Adjusted Current Liabilities

Increased in parallel with reported liabilities, showing a similar upward trend.

Adjusted Current Ratio

Followed a decreasing trend similar to the reported current ratio but remained slightly higher.

Liquidity Implication

The company’s capacity to cover current liabilities with current assets weakened over the period, highlighting potential liquidity challenges.

Total Debt

The total debt exhibits a fluctuating but generally downward trend from September 24, 2022, where it peaked at 121,010 million USD, to 107,525 million USD in September 28, 2024. Prior to this, there was a steady increase from 108,047 million USD in 2019 to a peak of 125,567 million USD in 2021.

Shareholders' Equity

There is a noticeable decline in shareholders' equity from 2019 through 2022, decreasing from 90,488 million USD to 50,672 million USD. Although there is some recovery in 2023 to 62,146 million USD, this is followed by a decrease again in 2024 to 56,950 million USD, indicating volatility and a downward pressure on equity over the period.

Reported Debt to Equity Ratio

The reported debt to equity ratio rises significantly from 1.19 in 2019 to 2.39 in 2022, reflecting increased leverage. After 2022, it decreases somewhat to 1.80 in 2023 but then slightly increases again to 1.89 in 2024, suggesting continued elevated financial risk relative to equity.

Adjusted Total Debt

The adjusted total debt follows a similar pattern to the reported total debt but at slightly higher levels, increasing from 116,582 million USD in 2019 to a peak of 136,522 million USD in 2021, then declining to 119,059 million USD in 2024. This indicates adjustments have consistently added to the measured debt burden.

Adjusted Shareholders' Equity

Adjusted shareholders' equity declines steadily from 90,543 million USD in 2019 to 48,535 million USD in 2022. A modest rebound to 56,995 million USD occurs in 2023, followed by a decrease to 50,548 million USD in 2024. The trend mirrors the reported equity, underscoring ongoing concerns about diminished equity values.

Adjusted Debt to Equity Ratio

This ratio shows an increasing trend, rising from 1.29 in 2019 to 2.73 in 2022, indicating a significant increase in leverage when adjusted values are considered. After declining to 2.17 in 2023, it increases again to 2.36 in 2024, reflecting sustained elevated leverage and financial risk over the period.

Total Debt

The total debt exhibits an overall moderate fluctuation over the six-year period. It increased from $108,047 million in 2019 to a peak of $125,567 million in 2021, followed by a steady decline to $107,525 million by 2024. This indicates a pattern of rising leverage up to 2021, then a gradual reduction in debt levels in the subsequent years.

Total Capital

Total capital shows a downward trend from $198,535 million in 2019 to $164,475 million in 2024. The capital base experienced some variability, notably a decline between 2019 and 2020, a partial recovery in 2021, and a continuing decrease thereafter. This suggests a contraction in the capital structure over the period examined.

Reported Debt to Capital Ratio

The reported debt to capital ratio increased from 0.54 in 2019 to a peak of 0.70 in 2022 before slightly declining to 0.65 in 2024. This trend aligns with the changes in debt and capital, indicating a higher proportion of debt financing within the capital structure initially, followed by a modest deleveraging phase.

Adjusted Total Debt

Adjusted total debt mirrors the pattern of reported total debt but at slightly higher levels, starting at $116,582 million in 2019 and peaking at $136,522 million in 2021. Thereafter, it declines consistently, reaching $119,059 million in 2024. This underscores the trend of increasing debt exposure until 2021, then a measured reduction over subsequent years when considering adjustments.

Adjusted Total Capital

The adjusted total capital also shows a declining pattern from $207,125 million in 2019 to $169,607 million in 2024. Variations over the years include a dip in 2020, a rise in 2021, then a general downward trajectory. This reinforces the observation of contracting capital levels when adjusted figures are considered.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased steadily from 0.56 in 2019 to a high of 0.73 in 2022, followed by a slight decrease to 0.70 in 2024. This indicates an increasing reliance on debt financing relative to adjusted capital, peaking in 2022, with a slight easing thereafter yet remaining elevated relative to earlier years.

Summary

Overall, the data reveals a rising leverage trend from 2019 through 2021-2022, characterized by increases in both reported and adjusted debt to capital ratios. Concurrently, total and adjusted capital measures declined, reflecting a shrinking capital base. Post-2022, there is evidence of debt reduction and slight deleveraging, though leverage ratios remain higher compared to 2019 levels. This pattern may reflect strategic shifts in capital structure management, balancing debt levels with capital resources over time.

The financial data over the six-year period reveals fluctuating asset and equity values, alongside changes in financial leverage ratios, indicating shifts in the company's capital structure and balance sheet management.

Total Assets

Total assets remained relatively stable from 2019 through 2023, fluctuating around the 340 billion US dollar mark with minor variations. A slight dip occurred during 2020, followed by a recovery and plateau through 2023, before increasing noticeably in 2024 to approximately 365 billion US dollars, suggesting an expansion in asset base at the end of the period observed.

Shareholders’ Equity

Shareholders' equity showed a pronounced declining trend from 2019 to 2022, dropping from approximately 90 billion to just above 50 billion US dollars, indicative of either increasing liabilities or reductions in retained earnings or capital. In 2023, equity rebounded moderately to around 62 billion, but then decreased again in 2024 to about 57 billion. This pattern reflects volatility in the equity base and potential shifts in financing policy or profitability impacts.

Reported Financial Leverage

The reported financial leverage ratio, defined as total assets divided by shareholders’ equity, increased significantly from 3.74 in 2019 to a peak of 6.96 in 2022, implying heavier reliance on debt or other liabilities relative to equity. The ratio declined somewhat in 2023 to 5.67 but rose again in 2024 to 6.41, indicating an overall trend towards greater leveraging over the period with some short-term moderation.

Adjusted Total Assets and Equity

The adjusted figures for total assets and shareholders’ equity closely mirror the reported values, exhibiting similar trends but with marginally lower totals in some years. Adjusted total assets fluctuated similarly to reported assets, reaching about 345 billion US dollars in 2024. Adjusted equity followed the decreasing trend as well, hitting a low near 48 billion in 2022, recovering to nearly 57 billion in 2023, and declining again in 2024.

Adjusted Financial Leverage

Adjusted financial leverage trends align with reported leverage, rising from 3.74 in 2019 to a high of 6.95 in 2022, decreasing slightly in 2023 to 5.87, then increasing again to 6.83 in 2024. This corroborates the pattern of heightened leverage with periods of partial deleveraging, reflecting management decisions affecting capital structure beyond raw reported figures.

In summary, the data indicates a general trend towards increasing financial leverage over the analyzed period, driven primarily by a consistent reduction in shareholders' equity relative to relatively stable or slightly increasing total asset levels. The peak leverage in 2022 suggests a point of maximum debt reliance, with subsequent mild fluctuations. The increases in total assets in 2024 imply potential growth or acquisition activity, while equity changes suggest fluctuations in reserves or capital injections. Overall, the company demonstrates a strategic preference for leveraged financing structures, with adjustments over time to balance growth and risk.

The financial data indicates several notable trends in profitability and revenue over the analyzed periods.

Net Income

Net income demonstrates a general upward trend from 2019 through 2022, increasing significantly from 55,256 million US dollars in 2019 to a peak of 99,803 million in 2022. However, a decline is observed in the subsequent years, with net income decreasing to 96,995 million in 2023 and further to 93,736 million in 2024.

Net Sales

Net sales exhibit a steady increase from 260,174 million US dollars in 2019 to a high of 394,328 million in 2022. This is followed by a slight decrease in 2023 to 383,285 million, before another moderate rise to 391,035 million in 2024, suggesting a fluctuating but generally strong sales performance in the latter years.

Reported Net Profit Margin

The reported net profit margin remains relatively stable, starting at 21.24% in 2019 and showing an increase to 25.88% in 2021. It then slightly declines but stabilizes around 25.31% in 2022 and 2023, followed by a moderate reduction to 23.97% in 2024. This suggests maintained efficiency and profitability relative to sales with some recent compression.

Adjusted Net Income

Adjusted net income largely mirrors the trends seen in net income, rising from 56,997 million in 2019 to a peak in 2021 at 92,175 million. A dip occurs in 2022 to 89,926 million, followed by increases in 2023 and 2024, reaching 95,685 million by the last period, indicating adjustments may smooth some volatility seen in reported net income.

Adjusted Net Sales

Adjusted net sales closely follow the pattern of net sales with increases from 259,474 million in 2019 to 394,828 million in 2022. A decline is then observed in 2023 to 382,985 million with a recovery to 391,735 million in 2024, reinforcing the overall sales trend observed.

Adjusted Net Profit Margin

The adjusted net profit margin begins at 21.97% in 2019 and peaks at 25.08% in 2021, followed by a notable decrease to 22.78% in 2022. Subsequently, it recovers to around 24.37% in 2023 and slightly improves to 24.43% in 2024, reflecting some fluctuations but a general maintenance of profitability adjusted for certain earnings elements.

In summary, the data reflects strong growth in both net income and sales through the early part of the period, peaking around 2021-2022, followed by a slight reduction in recent years. Profit margins, both reported and adjusted, generally remain robust with minor fluctuations. Adjusted figures tend to moderate extremes seen in reported values, indicating consistent profitability after accounting for adjustments.

The financial data over the six-year period reveals several notable trends in profitability and equity metrics.

Net Income

Net income exhibits an overall increasing trend from 2019 through 2022, climbing from approximately 55.3 billion USD to nearly 100 billion USD. However, in the subsequent years 2023 and 2024, there is a slight decline, with net income decreasing to around 93.7 billion USD by 2024.

Shareholders’ Equity

Shareholders’ equity shows a declining trajectory from 2019 to 2022, dropping from about 90.5 billion USD to approximately 50.7 billion USD. There is a modest recovery in 2023, with equity increasing to over 62 billion USD, before declining again to roughly 57 billion USD in 2024.

Reported Return on Equity (ROE)

The reported ROE demonstrates significant growth, starting at 61.06% in 2019 and peaking at nearly 197% in 2022. Following this peak, it decreases, although remains elevated above 150% in 2023 and 164.59% in 2024. This suggests enhanced efficiency in generating profits relative to equity over the period, despite fluctuations.

Adjusted Net Income

Adjusted net income follows a similar pattern to the reported net income, increasing notably from 57.0 billion USD in 2019 to approximately 92.2 billion USD in 2021. Thereafter, it slightly declines in 2022 but then rises consistently in 2023 and 2024, reaching nearly 95.7 billion USD in 2024. The adjusted figures indicate a generally positive trend in income after accounting for certain adjustments.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity shows a declining trend overall, from around 90.5 billion USD in 2019 to about 48.5 billion USD in 2022. A partial rebound appears in 2023, increasing to nearly 57.0 billion USD, followed by a decrease to roughly 50.5 billion USD in 2024. This pattern aligns closely with the non-adjusted equity values but at slightly different magnitudes.

Adjusted Return on Equity (ROE)

Adjusted ROE remains consistently high and follows a rising trend similar to the reported ROE. Beginning near 63% in 2019, it climbs steeply to approximately 185% in 2022, dips slightly in 2023, and then increases again to an all-time high of nearly 189.3% in 2024. This indicates sustained strong profitability relative to equity after adjustments.

In summary, the data portrays a company experiencing strong profitability growth particularly evident in the ROE percentages, driven in part by a declining equity base. While net income and adjusted net income have grown substantially, equity measures have generally decreased, resulting in unusually high ROE figures. The partial recoveries in equity in 2023 provide some moderation of this trend but have not reversed the overall pattern. These dynamics suggest effective profit generation but also warrant consideration of the implications of a shrinking equity base on financial stability and risk.

Net Income

The net income demonstrated an overall increasing trend from 2019 to 2022, rising from 55,256 million USD in 2019 to a peak of 99,803 million USD in 2022. However, in the subsequent years, it showed a slight decline, decreasing to 96,995 million USD in 2023 and further to 93,736 million USD in 2024.

Total Assets

Total assets displayed some fluctuations over the period. Starting at 338,516 million USD in 2019, assets decreased to 323,888 million USD in 2020. Thereafter, assets gradually increased, reaching 352,755 million USD in 2022 and remained relatively stable around 352,583 million USD in 2023 before rising again to 364,980 million USD in 2024.

Reported Return on Assets (ROA)

The reported ROA showed a consistent upward trajectory from 16.32% in 2019 to a peak of 28.29% in 2022. After this peak, a slight decline was observed, with ROA decreasing to 27.51% in 2023 and to 25.68% in 2024. Despite the decline towards the end, ROA remained significantly higher than the initial years.

Adjusted Net Income

Adjusted net income followed a similar pattern to reported net income, increasing steadily from 56,997 million USD in 2019 to 92,175 million USD in 2021. There was a mild decrease in 2022 to 89,926 million USD, followed by recovery and growth reaching 95,685 million USD in 2024, surpassing the previous peak adjusted income observed in 2021.

Adjusted Total Assets

Adjusted total assets declined from 339,006 million USD in 2019 to 315,731 million USD in 2020. Subsequently, a gradual increase took place, moving from 337,929 million USD in 2021 to 345,481 million USD in 2024, albeit with some variation. The trend points to stabilization and moderate growth in adjusted asset base during the period.

Adjusted Return on Assets (ROA)

The adjusted ROA generally increased over the years, from 16.81% in 2019 to 27.28% in 2021. While there was a slight decrease to 26.65% in 2022, it rebounded in the following years to 27.88% in 2023 and slightly declined to 27.7% in 2024. This indicates sustained strong efficiency in asset utilization across the reporting periods.

Overall Observations

Both reported and adjusted figures indicate improving profitability and asset utilization up to around 2021-2022, followed by some moderation in net income but continued strong returns on assets. The total assets exhibited moderate increases after a dip in 2020, suggesting careful asset management. The adjusted metrics show consistently slightly higher returns and steadier asset trends, reflecting potential adjustments for non-core and one-time items. The data implies robust financial performance with high efficiency, though recent slight declines in net income and ROA suggest monitoring trends for possible impacts on profitability going forward.