Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Apple Inc., solvency ratios

Microsoft Excel
Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018
Debt Ratios
Debt to equity 1.80 2.39 1.99 1.73 1.19 1.07
Debt to equity (including operating lease liability) 1.99 2.61 2.16 1.87 1.19 1.07
Debt to capital 0.64 0.70 0.67 0.63 0.54 0.52
Debt to capital (including operating lease liability) 0.67 0.72 0.68 0.65 0.54 0.52
Debt to assets 0.32 0.34 0.36 0.35 0.32 0.31
Debt to assets (including operating lease liability) 0.35 0.38 0.39 0.38 0.32 0.31
Financial leverage 5.67 6.96 5.56 4.96 3.74 3.41
Coverage Ratios
Interest coverage 29.92 41.64 42.29 24.35 19.38 23.50
Fixed charge coverage 28.52 25.65 26.13 16.34 14.48 17.42

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

Microsoft Excel
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 0.62 0.66 0.76 0.87 0.87

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
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

Microsoft Excel
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 0.68 0.73 0.83 0.94 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

Microsoft Excel
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 0.46

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
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

Microsoft Excel
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 0.45 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

Microsoft Excel
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 0.30

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

Microsoft Excel
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 0.31

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 (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

Microsoft Excel
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 2.43 2.55 2.71 2.89 2.85

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

Microsoft Excel
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 18.95 24.74 22.95 16.69 15.76

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

Microsoft Excel
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 12.69 14.27 13.51 10.19 10.44

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.