Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Apple Inc., solvency ratios

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Debt Ratios
Debt to equity 1.99 1.73 1.19 1.07 0.86 0.68
Debt to equity (including operating lease liability) 2.16 1.87 1.19 1.07 0.86 0.68
Debt to capital 0.67 0.63 0.54 0.52 0.46 0.40
Debt to capital (including operating lease liability) 0.68 0.65 0.54 0.52 0.46 0.40
Debt to assets 0.36 0.35 0.32 0.31 0.31 0.27
Debt to assets (including operating lease liability) 0.39 0.38 0.32 0.31 0.31 0.27
Financial leverage 5.56 4.96 3.74 3.41 2.80 2.51
Coverage Ratios
Interest coverage 42.29 24.35 19.38 23.50 28.59 43.15
Fixed charge coverage 26.13 16.34 14.48 17.42 19.72 26.63

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Apple Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Apple Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Apple Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Apple Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Apple Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Apple Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Apple Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Apple Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Apple Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Debt to Equity

Apple Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Current portion of finance leases 79  24  —  —  —  — 
Commercial paper 6,000  4,996  5,980  11,964  11,977  8,105 
Current portion of term debt 9,613  8,773  10,260  8,784  6,496  3,500 
Non-current portion of term debt 109,106  98,667  91,807  93,735  97,207  75,427 
Non-current portion of finance leases 769  637  —  —  —  — 
Total debt 125,567  113,097  108,047  114,483  115,680  87,032 
 
Shareholders’ equity 63,090  65,339  90,488  107,147  134,047  128,249 
Solvency Ratio
Debt to equity1 1.99 1.73 1.19 1.07 0.86 0.68
Benchmarks
Debt to Equity, Competitors2
Cisco Systems Inc. 0.28 0.38 0.73 0.59 0.51 0.45
Enphase Energy Inc. 2.41 0.68 0.39 14.12
Debt to Equity, Sector
Technology Hardware & Equipment 1.32 1.23 1.07 0.93 0.75
Debt to Equity, Industry
Information Technology 0.77 0.87 0.85 0.80 0.78

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 125,567 ÷ 63,090 = 1.99

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Apple Inc. debt to equity ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Equity (including Operating Lease Liability)

Apple Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Current portion of finance leases 79  24  —  —  —  — 
Commercial paper 6,000  4,996  5,980  11,964  11,977  8,105 
Current portion of term debt 9,613  8,773  10,260  8,784  6,496  3,500 
Non-current portion of term debt 109,106  98,667  91,807  93,735  97,207  75,427 
Non-current portion of finance leases 769  637  —  —  —  — 
Total debt 125,567  113,097  108,047  114,483  115,680  87,032 
Lease liabilities, operating leases (included in Other current liabilities) 1,449  1,436  —  —  —  — 
Lease liabilities, operating leases (included in Other non-current liabilities) 9,506  7,745  —  —  —  — 
Total debt (including operating lease liability) 136,522  122,278  108,047  114,483  115,680  87,032 
 
Shareholders’ equity 63,090  65,339  90,488  107,147  134,047  128,249 
Solvency Ratio
Debt to equity (including operating lease liability)1 2.16 1.87 1.19 1.07 0.86 0.68
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Cisco Systems Inc. 0.31 0.41 0.73 0.59 0.51 0.45
Enphase Energy Inc. 2.45 0.72 0.43 14.12
Debt to Equity (including Operating Lease Liability), Sector
Technology Hardware & Equipment 1.43 1.33 1.07 0.93 0.75
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.84 0.94 0.88 0.81 0.78

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 136,522 ÷ 63,090 = 2.16

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Apple Inc. debt to equity ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Capital

Apple Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Current portion of finance leases 79  24  —  —  —  — 
Commercial paper 6,000  4,996  5,980  11,964  11,977  8,105 
Current portion of term debt 9,613  8,773  10,260  8,784  6,496  3,500 
Non-current portion of term debt 109,106  98,667  91,807  93,735  97,207  75,427 
Non-current portion of finance leases 769  637  —  —  —  — 
Total debt 125,567  113,097  108,047  114,483  115,680  87,032 
Shareholders’ equity 63,090  65,339  90,488  107,147  134,047  128,249 
Total capital 188,657  178,436  198,535  221,630  249,727  215,281 
Solvency Ratio
Debt to capital1 0.67 0.63 0.54 0.52 0.46 0.40
Benchmarks
Debt to Capital, Competitors2
Cisco Systems Inc. 0.22 0.28 0.42 0.37 0.34 0.31
Enphase Energy Inc. 0.71 0.41 0.28 0.93 1.22
Debt to Capital, Sector
Technology Hardware & Equipment 0.57 0.55 0.52 0.48 0.43
Debt to Capital, Industry
Information Technology 0.44 0.47 0.46 0.44 0.44

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Debt to capital = Total debt ÷ Total capital
= 125,567 ÷ 188,657 = 0.67

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Apple Inc. debt to capital ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Capital (including Operating Lease Liability)

Apple Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Current portion of finance leases 79  24  —  —  —  — 
Commercial paper 6,000  4,996  5,980  11,964  11,977  8,105 
Current portion of term debt 9,613  8,773  10,260  8,784  6,496  3,500 
Non-current portion of term debt 109,106  98,667  91,807  93,735  97,207  75,427 
Non-current portion of finance leases 769  637  —  —  —  — 
Total debt 125,567  113,097  108,047  114,483  115,680  87,032 
Lease liabilities, operating leases (included in Other current liabilities) 1,449  1,436  —  —  —  — 
Lease liabilities, operating leases (included in Other non-current liabilities) 9,506  7,745  —  —  —  — 
Total debt (including operating lease liability) 136,522  122,278  108,047  114,483  115,680  87,032 
Shareholders’ equity 63,090  65,339  90,488  107,147  134,047  128,249 
Total capital (including operating lease liability) 199,612  187,617  198,535  221,630  249,727  215,281 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.68 0.65 0.54 0.52 0.46 0.40
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Cisco Systems Inc. 0.24 0.29 0.42 0.37 0.34 0.31
Enphase Energy Inc. 0.71 0.42 0.30 0.93 1.22
Debt to Capital (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.59 0.57 0.52 0.48 0.43
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.46 0.48 0.47 0.45 0.44

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 136,522 ÷ 199,612 = 0.68

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Apple Inc. debt to capital ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Assets

Apple Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Current portion of finance leases 79  24  —  —  —  — 
Commercial paper 6,000  4,996  5,980  11,964  11,977  8,105 
Current portion of term debt 9,613  8,773  10,260  8,784  6,496  3,500 
Non-current portion of term debt 109,106  98,667  91,807  93,735  97,207  75,427 
Non-current portion of finance leases 769  637  —  —  —  — 
Total debt 125,567  113,097  108,047  114,483  115,680  87,032 
 
Total assets 351,002  323,888  338,516  365,725  375,319  321,686 
Solvency Ratio
Debt to assets1 0.36 0.35 0.32 0.31 0.31 0.27
Benchmarks
Debt to Assets, Competitors2
Cisco Systems Inc. 0.12 0.15 0.25 0.24 0.26 0.24
Enphase Energy Inc. 0.50 0.28 0.15 0.32 0.29
Debt to Assets, Sector
Technology Hardware & Equipment 0.31 0.30 0.30 0.30 0.30
Debt to Assets, Industry
Information Technology 0.28 0.30 0.30 0.29 0.30

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Debt to assets = Total debt ÷ Total assets
= 125,567 ÷ 351,002 = 0.36

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Apple Inc. debt to assets ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Debt to Assets (including Operating Lease Liability)

Apple Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Current portion of finance leases 79  24  —  —  —  — 
Commercial paper 6,000  4,996  5,980  11,964  11,977  8,105 
Current portion of term debt 9,613  8,773  10,260  8,784  6,496  3,500 
Non-current portion of term debt 109,106  98,667  91,807  93,735  97,207  75,427 
Non-current portion of finance leases 769  637  —  —  —  — 
Total debt 125,567  113,097  108,047  114,483  115,680  87,032 
Lease liabilities, operating leases (included in Other current liabilities) 1,449  1,436  —  —  —  — 
Lease liabilities, operating leases (included in Other non-current liabilities) 9,506  7,745  —  —  —  — 
Total debt (including operating lease liability) 136,522  122,278  108,047  114,483  115,680  87,032 
 
Total assets 351,002  323,888  338,516  365,725  375,319  321,686 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.39 0.38 0.32 0.31 0.31 0.27
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Cisco Systems Inc. 0.13 0.16 0.25 0.24 0.26 0.24
Enphase Energy Inc. 0.51 0.29 0.17 0.32 0.29
Debt to Assets (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.33 0.33 0.30 0.30 0.30
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.30 0.32 0.31 0.29 0.30

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 136,522 ÷ 351,002 = 0.39

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Apple Inc. debt to assets ratio (including operating lease liability) deteriorated from 2019 to 2020 and from 2020 to 2021.

Financial Leverage

Apple Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Total assets 351,002  323,888  338,516  365,725  375,319  321,686 
Shareholders’ equity 63,090  65,339  90,488  107,147  134,047  128,249 
Solvency Ratio
Financial leverage1 5.56 4.96 3.74 3.41 2.80 2.51
Benchmarks
Financial Leverage, Competitors2
Cisco Systems Inc. 2.36 2.50 2.91 2.52 1.96 1.91
Enphase Energy Inc. 4.83 2.48 2.62 43.72
Financial Leverage, Sector
Technology Hardware & Equipment 4.30 4.05 3.51 3.16 2.52
Financial Leverage, Industry
Information Technology 2.75 2.91 2.84 2.74 2.56

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 351,002 ÷ 63,090 = 5.56

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Apple Inc. financial leverage ratio increased from 2019 to 2020 and from 2020 to 2021.

Interest Coverage

Apple Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Net income 94,680  57,411  55,256  59,531  48,351  45,687 
Add: Income tax expense 14,527  9,680  10,481  13,372  15,738  15,685 
Add: Interest expense 2,645  2,873  3,576  3,240  2,323  1,456 
Earnings before interest and tax (EBIT) 111,852  69,964  69,313  76,143  66,412  62,828 
Solvency Ratio
Interest coverage1 42.29 24.35 19.38 23.50 28.59 43.15
Benchmarks
Interest Coverage, Competitors2
Cisco Systems Inc. 31.56 24.88 17.96 14.83 15.27 20.11
Enphase Energy Inc. 3.68 6.69 10.30 0.04 -4.52
Interest Coverage, Sector
Technology Hardware & Equipment 40.24 24.33 19.09 21.49 24.91
Interest Coverage, Industry
Information Technology 22.99 16.99 16.40 18.11 17.12

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Interest coverage = EBIT ÷ Interest expense
= 111,852 ÷ 2,645 = 42.29

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Apple Inc. interest coverage ratio improved from 2019 to 2020 and from 2020 to 2021.

Fixed Charge Coverage

Apple Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Net income 94,680  57,411  55,256  59,531  48,351  45,687 
Add: Income tax expense 14,527  9,680  10,481  13,372  15,738  15,685 
Add: Interest expense 2,645  2,873  3,576  3,240  2,323  1,456 
Earnings before interest and tax (EBIT) 111,852  69,964  69,313  76,143  66,412  62,828 
Add: Lease costs associated with fixed payments on operating leases 1,700  1,500  1,300  1,200  1,100  939 
Earnings before fixed charges and tax 113,552  71,464  70,613  77,343  67,512  63,767 
 
Interest expense 2,645  2,873  3,576  3,240  2,323  1,456 
Lease costs associated with fixed payments on operating leases 1,700  1,500  1,300  1,200  1,100  939 
Fixed charges 4,345  4,373  4,876  4,440  3,423  2,395 
Solvency Ratio
Fixed charge coverage1 26.13 16.34 14.48 17.42 19.72 26.63
Benchmarks
Fixed Charge Coverage, Competitors2
Cisco Systems Inc. 16.92 14.79 12.28 10.41 10.72 13.18
Enphase Energy Inc. 3.32 5.53 7.56 0.26 -3.12
Fixed Charge Coverage, Sector
Technology Hardware & Equipment 24.44 16.00 14.01 15.72 17.25
Fixed Charge Coverage, Industry
Information Technology 13.86 10.59 10.91 11.84 11.04

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 113,552 ÷ 4,345 = 26.13

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Apple Inc. fixed charge coverage ratio improved from 2019 to 2020 and from 2020 to 2021.