Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Apple Inc., solvency ratios
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
| 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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Apple Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| 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) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Apple Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Apple Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity
Apple Inc., debt to equity calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 165) | 129) | 79) | 24) | —) | —) | |
| Commercial paper | 5,985) | 9,982) | 6,000) | 4,996) | 5,980) | 11,964) | |
| Current portion of term debt | 9,822) | 11,128) | 9,613) | 8,773) | 10,260) | 8,784) | |
| Non-current portion of term debt | 95,281) | 98,959) | 109,106) | 98,667) | 91,807) | 93,735) | |
| Non-current portion of finance leases | 859) | 812) | 769) | 637) | —) | —) | |
| Total debt | 112,112) | 121,010) | 125,567) | 113,097) | 108,047) | 114,483) | |
| Shareholders’ equity | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | 107,147) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.80 | 2.39 | 1.99 | 1.73 | 1.19 | 1.07 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.19 | 0.24 | 0.28 | 0.38 | 0.73 | 0.59 | |
| Super Micro Computer Inc. | 0.15 | 0.42 | 0.09 | 0.03 | 0.03 | 0.14 | |
| Debt to Equity, Sector | |||||||
| Technology Hardware & Equipment | 1.04 | 1.36 | 1.25 | 1.19 | 1.04 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.63 | 0.67 | 0.77 | 0.88 | 0.88 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 112,112 ÷ 62,146 = 1.80
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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Equity (including Operating Lease Liability)
Apple Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 165) | 129) | 79) | 24) | —) | —) | |
| Commercial paper | 5,985) | 9,982) | 6,000) | 4,996) | 5,980) | 11,964) | |
| Current portion of term debt | 9,822) | 11,128) | 9,613) | 8,773) | 10,260) | 8,784) | |
| Non-current portion of term debt | 95,281) | 98,959) | 109,106) | 98,667) | 91,807) | 93,735) | |
| Non-current portion of finance leases | 859) | 812) | 769) | 637) | —) | —) | |
| Total debt | 112,112) | 121,010) | 125,567) | 113,097) | 108,047) | 114,483) | |
| Lease liabilities, operating leases (included in Other current liabilities) | 1,410) | 1,534) | 1,449) | 1,436) | —) | —) | |
| Lease liabilities, operating leases (included in Other non-current liabilities) | 10,408) | 9,936) | 9,506) | 7,745) | —) | —) | |
| Total debt (including operating lease liability) | 123,930) | 132,480) | 136,522) | 122,278) | 108,047) | 114,483) | |
| Shareholders’ equity | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | 107,147) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.99 | 2.61 | 2.16 | 1.87 | 1.19 | 1.07 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | — | |
| Cisco Systems Inc. | 0.21 | 0.27 | 0.31 | 0.41 | 0.73 | 0.59 | |
| Super Micro Computer Inc. | 0.16 | 0.44 | 0.11 | 0.05 | 0.03 | 0.14 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 1.16 | 1.49 | 1.37 | 1.28 | 1.04 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.69 | 0.73 | 0.84 | 0.95 | 0.90 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 123,930 ÷ 62,146 = 1.99
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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital
Apple Inc., debt to capital calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 165) | 129) | 79) | 24) | —) | —) | |
| Commercial paper | 5,985) | 9,982) | 6,000) | 4,996) | 5,980) | 11,964) | |
| Current portion of term debt | 9,822) | 11,128) | 9,613) | 8,773) | 10,260) | 8,784) | |
| Non-current portion of term debt | 95,281) | 98,959) | 109,106) | 98,667) | 91,807) | 93,735) | |
| Non-current portion of finance leases | 859) | 812) | 769) | 637) | —) | —) | |
| Total debt | 112,112) | 121,010) | 125,567) | 113,097) | 108,047) | 114,483) | |
| Shareholders’ equity | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | 107,147) | |
| Total capital | 174,258) | 171,682) | 188,657) | 178,436) | 198,535) | 221,630) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.64 | 0.70 | 0.67 | 0.63 | 0.54 | 0.52 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.16 | 0.19 | 0.22 | 0.28 | 0.42 | 0.37 | |
| Super Micro Computer Inc. | 0.13 | 0.30 | 0.08 | 0.03 | 0.02 | 0.12 | |
| Debt to Capital, Sector | |||||||
| Technology Hardware & Equipment | 0.51 | 0.58 | 0.56 | 0.54 | 0.51 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.47 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 112,112 ÷ 174,258 = 0.64
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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Capital (including Operating Lease Liability)
Apple Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 165) | 129) | 79) | 24) | —) | —) | |
| Commercial paper | 5,985) | 9,982) | 6,000) | 4,996) | 5,980) | 11,964) | |
| Current portion of term debt | 9,822) | 11,128) | 9,613) | 8,773) | 10,260) | 8,784) | |
| Non-current portion of term debt | 95,281) | 98,959) | 109,106) | 98,667) | 91,807) | 93,735) | |
| Non-current portion of finance leases | 859) | 812) | 769) | 637) | —) | —) | |
| Total debt | 112,112) | 121,010) | 125,567) | 113,097) | 108,047) | 114,483) | |
| Lease liabilities, operating leases (included in Other current liabilities) | 1,410) | 1,534) | 1,449) | 1,436) | —) | —) | |
| Lease liabilities, operating leases (included in Other non-current liabilities) | 10,408) | 9,936) | 9,506) | 7,745) | —) | —) | |
| Total debt (including operating lease liability) | 123,930) | 132,480) | 136,522) | 122,278) | 108,047) | 114,483) | |
| Shareholders’ equity | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | 107,147) | |
| Total capital (including operating lease liability) | 186,076) | 183,152) | 199,612) | 187,617) | 198,535) | 221,630) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.67 | 0.72 | 0.68 | 0.65 | 0.54 | 0.52 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Arista Networks Inc. | 0.01 | 0.01 | 0.02 | 0.03 | 0.03 | — | |
| Cisco Systems Inc. | 0.18 | 0.21 | 0.24 | 0.29 | 0.42 | 0.37 | |
| Super Micro Computer Inc. | 0.14 | 0.30 | 0.10 | 0.05 | 0.02 | 0.12 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 0.54 | 0.60 | 0.58 | 0.56 | 0.51 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.41 | 0.42 | 0.46 | 0.49 | 0.47 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 123,930 ÷ 186,076 = 0.67
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 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Debt to Assets
Apple Inc., debt to assets calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 165) | 129) | 79) | 24) | —) | —) | |
| Commercial paper | 5,985) | 9,982) | 6,000) | 4,996) | 5,980) | 11,964) | |
| Current portion of term debt | 9,822) | 11,128) | 9,613) | 8,773) | 10,260) | 8,784) | |
| Non-current portion of term debt | 95,281) | 98,959) | 109,106) | 98,667) | 91,807) | 93,735) | |
| Non-current portion of finance leases | 859) | 812) | 769) | 637) | —) | —) | |
| Total debt | 112,112) | 121,010) | 125,567) | 113,097) | 108,047) | 114,483) | |
| Total assets | 352,583) | 352,755) | 351,002) | 323,888) | 338,516) | 365,725) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.32 | 0.34 | 0.36 | 0.35 | 0.32 | 0.31 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Arista Networks Inc. | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | |
| Cisco Systems Inc. | 0.08 | 0.10 | 0.12 | 0.15 | 0.25 | 0.24 | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.04 | 0.02 | 0.01 | 0.07 | |
| Debt to Assets, Sector | |||||||
| Technology Hardware & Equipment | 0.26 | 0.29 | 0.30 | 0.30 | 0.30 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.31 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 112,112 ÷ 352,583 = 0.32
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 improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Apple Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 165) | 129) | 79) | 24) | —) | —) | |
| Commercial paper | 5,985) | 9,982) | 6,000) | 4,996) | 5,980) | 11,964) | |
| Current portion of term debt | 9,822) | 11,128) | 9,613) | 8,773) | 10,260) | 8,784) | |
| Non-current portion of term debt | 95,281) | 98,959) | 109,106) | 98,667) | 91,807) | 93,735) | |
| Non-current portion of finance leases | 859) | 812) | 769) | 637) | —) | —) | |
| Total debt | 112,112) | 121,010) | 125,567) | 113,097) | 108,047) | 114,483) | |
| Lease liabilities, operating leases (included in Other current liabilities) | 1,410) | 1,534) | 1,449) | 1,436) | —) | —) | |
| Lease liabilities, operating leases (included in Other non-current liabilities) | 10,408) | 9,936) | 9,506) | 7,745) | —) | —) | |
| Total debt (including operating lease liability) | 123,930) | 132,480) | 136,522) | 122,278) | 108,047) | 114,483) | |
| Total assets | 352,583) | 352,755) | 351,002) | 323,888) | 338,516) | 365,725) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.35 | 0.38 | 0.39 | 0.38 | 0.32 | 0.31 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Arista Networks Inc. | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | — | |
| Cisco Systems Inc. | 0.09 | 0.11 | 0.13 | 0.16 | 0.25 | 0.24 | |
| Super Micro Computer Inc. | 0.08 | 0.19 | 0.05 | 0.03 | 0.01 | 0.07 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | 0.29 | 0.31 | 0.33 | 0.32 | 0.30 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.32 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 123,930 ÷ 352,583 = 0.35
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) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Apple Inc., financial leverage calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 352,583) | 352,755) | 351,002) | 323,888) | 338,516) | 365,725) | |
| Shareholders’ equity | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | 107,147) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 5.67 | 6.96 | 5.56 | 4.96 | 3.74 | 3.41 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Arista Networks Inc. | 1.38 | 1.39 | 1.44 | 1.43 | 1.45 | — | |
| Cisco Systems Inc. | 2.30 | 2.36 | 2.36 | 2.50 | 2.91 | 2.52 | |
| Super Micro Computer Inc. | 1.86 | 2.25 | 2.05 | 1.80 | 1.79 | 2.10 | |
| Financial Leverage, Sector | |||||||
| Technology Hardware & Equipment | 4.05 | 4.72 | 4.17 | 3.95 | 3.46 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.56 | 2.72 | 2.90 | 2.87 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 352,583 ÷ 62,146 = 5.67
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 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Interest Coverage
Apple Inc., interest coverage calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 96,995) | 99,803) | 94,680) | 57,411) | 55,256) | 59,531) | |
| Add: Income tax expense | 16,741) | 19,300) | 14,527) | 9,680) | 10,481) | 13,372) | |
| Add: Interest expense | 3,933) | 2,931) | 2,645) | 2,873) | 3,576) | 3,240) | |
| Earnings before interest and tax (EBIT) | 117,669) | 122,034) | 111,852) | 69,964) | 69,313) | 76,143) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 29.92 | 41.64 | 42.29 | 24.35 | 19.38 | 23.50 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Arista Networks Inc. | — | — | — | — | — | — | |
| Cisco Systems Inc. | 36.87 | 41.21 | 31.56 | 24.88 | 17.96 | 14.83 | |
| Super Micro Computer Inc. | 72.55 | 53.71 | 48.81 | 40.01 | 13.97 | 15.78 | |
| Interest Coverage, Sector | |||||||
| Technology Hardware & Equipment | 31.25 | 42.09 | 41.08 | 24.67 | 19.29 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 18.91 | 24.76 | 22.93 | 16.69 | 15.79 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 117,669 ÷ 3,933 = 29.92
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 deteriorated from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Apple Inc., fixed charge coverage calculation, comparison to benchmarks
| Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 96,995) | 99,803) | 94,680) | 57,411) | 55,256) | 59,531) | |
| Add: Income tax expense | 16,741) | 19,300) | 14,527) | 9,680) | 10,481) | 13,372) | |
| Add: Interest expense | 3,933) | 2,931) | 2,645) | 2,873) | 3,576) | 3,240) | |
| Earnings before interest and tax (EBIT) | 117,669) | 122,034) | 111,852) | 69,964) | 69,313) | 76,143) | |
| Add: Lease costs associated with fixed payments on operating leases | 200) | 1,900) | 1,700) | 1,500) | 1,300) | 1,200) | |
| Earnings before fixed charges and tax | 117,869) | 123,934) | 113,552) | 71,464) | 70,613) | 77,343) | |
| Interest expense | 3,933) | 2,931) | 2,645) | 2,873) | 3,576) | 3,240) | |
| Lease costs associated with fixed payments on operating leases | 200) | 1,900) | 1,700) | 1,500) | 1,300) | 1,200) | |
| Fixed charges | 4,133) | 4,831) | 4,345) | 4,373) | 4,876) | 4,440) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 28.52 | 25.65 | 26.13 | 16.34 | 14.48 | 17.42 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Arista Networks Inc. | 73.83 | 49.20 | 31.02 | 24.95 | 30.94 | — | |
| Cisco Systems Inc. | 18.98 | 20.30 | 16.92 | 14.79 | 12.28 | 10.41 | |
| Super Micro Computer Inc. | 40.95 | 24.03 | 12.52 | 10.45 | 7.48 | 8.28 | |
| Fixed Charge Coverage, Sector | |||||||
| Technology Hardware & Equipment | 27.25 | 25.07 | 24.67 | 16.09 | 14.08 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 12.67 | 14.28 | 13.50 | 10.20 | 10.46 | — | |
Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 117,869 ÷ 4,133 = 28.52
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |