Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Apple Inc. (NASDAQ:AAPL)

Analysis of Solvency Ratios

Beginner level

Solvency Ratios (Summary)

Apple Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Debt Ratios
Debt to equity 1.72 1.19 1.07 0.86 0.68 0.54
Debt to equity (including operating lease liability) 1.86 1.19 1.07 0.86 0.68 0.54
Debt to capital 0.63 0.54 0.52 0.46 0.40 0.35
Debt to capital (including operating lease liability) 0.65 0.54 0.52 0.46 0.40 0.35
Debt to assets 0.35 0.32 0.31 0.31 0.27 0.22
Debt to assets (including operating lease liability) 0.38 0.32 0.31 0.31 0.27 0.22
Financial leverage 4.96 3.74 3.41 2.80 2.51 2.43
Coverage Ratios
Interest coverage 24.35 19.38 23.50 28.59 43.15 99.93
Fixed charge coverage 16.34 14.48 17.42 19.72 26.63 48.49

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Apple Inc.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Apple Inc.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Apple Inc.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
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.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Apple Inc.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Apple Inc.’s interest coverage ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Apple Inc.’s fixed charge coverage ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Commercial paper 4,996  5,980  11,964  11,977  8,105  8,499 
Current portion of term debt 8,773  10,260  8,784  6,496  3,500  2,500 
Non-current portion of term debt 98,667  91,807  93,735  97,207  75,427  53,463 
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Solvency Ratio
Debt to equity1 1.72 1.19 1.07 0.86 0.68 0.54
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc. 0.06 0.17 0.99 2.28 3.45
Analog Devices Inc. 0.43 0.47 0.58 0.77 0.34 0.17
Applied Materials Inc. 0.52 0.65 0.78 0.57 0.46 0.60
Broadcom Inc. 1.72 1.32 0.66 0.87 0.72 0.84
Cisco Systems Inc. 0.38 0.73 0.59 0.51 0.45 0.42
Intel Corp. 0.45 0.37 0.35 0.39 0.38
Lam Research Corp. 1.12 0.96 0.37 0.40 0.74 0.46
Micron Technology Inc. 0.17 0.16 0.14 0.60 0.82 0.60
NVIDIA Corp. 0.16 0.21 0.27 0.48 0.32
Qualcomm Inc. 2.59 3.25 17.64 0.71 0.37 0.35
Texas Instruments Inc. 0.74 0.65 0.56 0.39 0.34
Debt to Equity, Sector
Technology Hardware & Equipment 0.82 0.77 0.70 0.66 0.54
Debt to Equity, Industry
Technology 0.55 0.56 0.56 0.59 0.48

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 112,436 ÷ 65,339 = 1.72

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.’s debt to equity ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Commercial paper 4,996  5,980  11,964  11,977  8,105  8,499 
Current portion of term debt 8,773  10,260  8,784  6,496  3,500  2,500 
Non-current portion of term debt 98,667  91,807  93,735  97,207  75,427  53,463 
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
Lease liabilities, operating leases (included in Other current liabilities) 1,436  —  —  —  —  — 
Lease liabilities, operating leases (included in Other non-current liabilities) 7,745  —  —  —  —  — 
Total debt (including operating lease liability) 121,617  108,047  114,483  115,680  87,032  64,462 
 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Solvency Ratio
Debt to equity (including operating lease liability)1 1.86 1.19 1.07 0.86 0.68 0.54
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.10 0.26 0.99 2.28 3.45
Analog Devices Inc. 0.46 0.47 0.58 0.77 0.34 0.17
Applied Materials Inc. 0.54 0.65 0.78 0.57 0.46 0.60
Broadcom Inc. 1.75 1.32 0.66 0.87 0.72 0.84
Cisco Systems Inc. 0.41 0.73 0.59 0.51 0.45 0.42
Intel Corp. 0.46 0.38 0.35 0.39 0.38
Lam Research Corp. 1.16 0.96 0.37 0.40 0.74 0.46
Micron Technology Inc. 0.19 0.16 0.14 0.60 0.82 0.60
NVIDIA Corp. 0.22 0.21 0.27 0.48 0.32
Qualcomm Inc. 2.67 3.25 17.64 0.71 0.37 0.35
Texas Instruments Inc. 0.77 0.69 0.56 0.39 0.34
Debt to Equity (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.87 0.77 0.70 0.66 0.54
Debt to Equity (including Operating Lease Liability), Industry
Technology 0.62 0.61 0.57 0.59 0.48

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 121,617 ÷ 65,339 = 1.86

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.’s debt to equity ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Commercial paper 4,996  5,980  11,964  11,977  8,105  8,499 
Current portion of term debt 8,773  10,260  8,784  6,496  3,500  2,500 
Non-current portion of term debt 98,667  91,807  93,735  97,207  75,427  53,463 
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Total capital 177,775  198,535  221,630  249,727  215,281  183,817 
Solvency Ratio
Debt to capital1 0.63 0.54 0.52 0.46 0.40 0.35
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc. 0.05 0.15 0.50 0.70 0.78
Analog Devices Inc. 0.30 0.32 0.37 0.44 0.25 0.15
Applied Materials Inc. 0.34 0.39 0.44 0.36 0.32 0.37
Broadcom Inc. 0.63 0.57 0.40 0.46 0.42 0.46
Cisco Systems Inc. 0.28 0.42 0.37 0.34 0.31 0.30
Intel Corp. 0.31 0.27 0.26 0.28 0.28
Lam Research Corp. 0.53 0.49 0.27 0.28 0.42 0.32
Micron Technology Inc. 0.15 0.14 0.13 0.37 0.45 0.37
NVIDIA Corp. 0.14 0.18 0.21 0.33 0.24
Qualcomm Inc. 0.72 0.76 0.95 0.42 0.27 0.26
Texas Instruments Inc. 0.43 0.39 0.36 0.28 0.26
Debt to Capital, Sector
Technology Hardware & Equipment 0.45 0.43 0.41 0.40 0.35
Debt to Capital, Industry
Technology 0.36 0.36 0.36 0.37 0.33

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 112,436 ÷ 177,775 = 0.63

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.’s debt to capital ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Commercial paper 4,996  5,980  11,964  11,977  8,105  8,499 
Current portion of term debt 8,773  10,260  8,784  6,496  3,500  2,500 
Non-current portion of term debt 98,667  91,807  93,735  97,207  75,427  53,463 
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
Lease liabilities, operating leases (included in Other current liabilities) 1,436  —  —  —  —  — 
Lease liabilities, operating leases (included in Other non-current liabilities) 7,745  —  —  —  —  — 
Total debt (including operating lease liability) 121,617  108,047  114,483  115,680  87,032  64,462 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Total capital (including operating lease liability) 186,956  198,535  221,630  249,727  215,281  183,817 
Solvency Ratio
Debt to capital (including operating lease liability)1 0.65 0.54 0.52 0.46 0.40 0.35
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.09 0.20 0.50 0.70 0.78
Analog Devices Inc. 0.31 0.32 0.37 0.44 0.25 0.15
Applied Materials Inc. 0.35 0.39 0.44 0.36 0.32 0.37
Broadcom Inc. 0.64 0.57 0.40 0.46 0.42 0.46
Cisco Systems Inc. 0.29 0.42 0.37 0.34 0.31 0.30
Intel Corp. 0.31 0.28 0.26 0.28 0.28
Lam Research Corp. 0.54 0.49 0.27 0.28 0.42 0.32
Micron Technology Inc. 0.16 0.14 0.13 0.37 0.45 0.37
NVIDIA Corp. 0.18 0.18 0.21 0.33 0.24
Qualcomm Inc. 0.73 0.76 0.95 0.42 0.27 0.26
Texas Instruments Inc. 0.44 0.41 0.36 0.28 0.26
Debt to Capital (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.46 0.44 0.41 0.40 0.35
Debt to Capital (including Operating Lease Liability), Industry
Technology 0.38 0.38 0.36 0.37 0.33

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 121,617 ÷ 186,956 = 0.65

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.’s debt to capital ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Commercial paper 4,996  5,980  11,964  11,977  8,105  8,499 
Current portion of term debt 8,773  10,260  8,784  6,496  3,500  2,500 
Non-current portion of term debt 98,667  91,807  93,735  97,207  75,427  53,463 
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
 
Total assets 323,888  338,516  365,725  375,319  321,686  290,479 
Solvency Ratio
Debt to assets1 0.35 0.32 0.31 0.31 0.27 0.22
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc. 0.04 0.08 0.27 0.39 0.43
Analog Devices Inc. 0.24 0.26 0.31 0.37 0.22 0.12
Applied Materials Inc. 0.24 0.28 0.30 0.27 0.23 0.30
Broadcom Inc. 0.54 0.49 0.35 0.32 0.27 0.37
Cisco Systems Inc. 0.15 0.25 0.24 0.26 0.24 0.22
Intel Corp. 0.24 0.21 0.21 0.22 0.22
Lam Research Corp. 0.40 0.37 0.19 0.22 0.35 0.25
Micron Technology Inc. 0.12 0.12 0.11 0.32 0.36 0.30
NVIDIA Corp. 0.11 0.15 0.18 0.28 0.19
Qualcomm Inc. 0.44 0.48 0.50 0.33 0.22 0.22
Texas Instruments Inc. 0.35 0.32 0.30 0.23 0.22
Debt to Assets, Sector
Technology Hardware & Equipment 0.30 0.30 0.28 0.29 0.26
Debt to Assets, Industry
Technology 0.24 0.24 0.25 0.27 0.24

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 112,436 ÷ 323,888 = 0.35

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.’s debt to assets ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Commercial paper 4,996  5,980  11,964  11,977  8,105  8,499 
Current portion of term debt 8,773  10,260  8,784  6,496  3,500  2,500 
Non-current portion of term debt 98,667  91,807  93,735  97,207  75,427  53,463 
Total debt 112,436  108,047  114,483  115,680  87,032  64,462 
Lease liabilities, operating leases (included in Other current liabilities) 1,436  —  —  —  —  — 
Lease liabilities, operating leases (included in Other non-current liabilities) 7,745  —  —  —  —  — 
Total debt (including operating lease liability) 121,617  108,047  114,483  115,680  87,032  64,462 
 
Total assets 323,888  338,516  365,725  375,319  321,686  290,479 
Solvency Ratio
Debt to assets (including operating lease liability)1 0.38 0.32 0.31 0.31 0.27 0.22
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc. 0.06 0.12 0.27 0.39 0.43
Analog Devices Inc. 0.25 0.26 0.31 0.37 0.22 0.12
Applied Materials Inc. 0.26 0.28 0.30 0.27 0.23 0.30
Broadcom Inc. 0.55 0.49 0.35 0.32 0.27 0.37
Cisco Systems Inc. 0.16 0.25 0.24 0.26 0.24 0.22
Intel Corp. 0.24 0.22 0.21 0.22 0.22
Lam Research Corp. 0.41 0.37 0.19 0.22 0.35 0.25
Micron Technology Inc. 0.13 0.12 0.11 0.32 0.36 0.30
NVIDIA Corp. 0.15 0.15 0.18 0.28 0.19
Qualcomm Inc. 0.46 0.48 0.50 0.33 0.22 0.22
Texas Instruments Inc. 0.37 0.34 0.30 0.23 0.22
Debt to Assets (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.32 0.30 0.28 0.29 0.26
Debt to Assets (including Operating Lease Liability), Industry
Technology 0.27 0.26 0.25 0.27 0.24

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 121,617 ÷ 323,888 = 0.38

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.’s debt to assets ratio (including operating lease liability) deteriorated from 2018 to 2019 and from 2019 to 2020.

Financial Leverage

Apple Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Total assets 323,888  338,516  365,725  375,319  321,686  290,479 
Shareholders’ equity 65,339  90,488  107,147  134,047  128,249  119,355 
Solvency Ratio
Financial leverage1 4.96 3.74 3.41 2.80 2.51 2.43
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc. 1.54 2.13 3.60 5.79 7.98
Analog Devices Inc. 1.79 1.83 1.86 2.08 1.54 1.39
Applied Materials Inc. 2.11 2.32 2.60 2.08 2.02 2.01
Broadcom Inc. 3.18 2.71 1.88 2.68 2.64 2.25
Cisco Systems Inc. 2.50 2.91 2.52 1.96 1.91 1.90
Intel Corp. 1.89 1.76 1.72 1.79 1.71
Lam Research Corp. 2.81 2.57 1.92 1.78 2.08 1.84
Micron Technology Inc. 1.38 1.36 1.34 1.90 2.28 1.96
NVIDIA Corp. 1.42 1.42 1.50 1.71 1.65
Qualcomm Inc. 5.86 6.71 35.22 2.13 1.65 1.62
Texas Instruments Inc. 2.11 2.02 1.91 1.71 1.57
Financial Leverage, Sector
Technology Hardware & Equipment 2.73 2.59 2.49 2.27 2.11
Financial Leverage, Industry
Technology 2.31 2.32 2.27 2.20 2.04

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 323,888 ÷ 65,339 = 4.96

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.’s financial leverage ratio increased from 2018 to 2019 and from 2019 to 2020.

Interest Coverage

Apple Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Add: Income tax expense 9,680  10,481  13,372  15,738  15,685  19,121 
Add: Interest expense 2,873  3,576  3,240  2,323  1,456  733 
Earnings before interest and tax (EBIT) 69,964  69,313  76,143  66,412  62,828  73,248 
Solvency Ratio
Interest coverage1 24.35 19.38 23.50 28.59 43.15 99.93
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc. 28.23 4.96 3.71 1.49 -1.94
Analog Devices Inc. 7.79 7.49 7.46 4.30 11.78 30.97
Applied Materials Inc. 18.36 14.79 21.06 19.84 13.99 16.51
Broadcom Inc. 2.37 2.54 8.24 5.02 -0.89 8.68
Cisco Systems Inc. 24.88 17.96 14.83 15.27 20.11 20.79
Intel Corp. 40.87 50.20 50.82 32.50 18.65
Lam Research Corp. 15.51 21.86 33.36 16.39 8.12 11.05
Micron Technology Inc. 16.41 56.09 42.83 9.66 0.41 9.24
NVIDIA Corp. 58.12 68.17 53.39 33.84 16.81
Qualcomm Inc. 10.50 12.93 1.67 7.11 24.01 63.38
Texas Instruments Inc. 32.67 34.69 54.49 78.95 62.63
Interest Coverage, Sector
Technology Hardware & Equipment 18.94 18.23 21.37 20.52 22.02
Interest Coverage, Industry
Technology 22.15 19.78 21.77 20.42 22.56

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Interest coverage = EBIT ÷ Interest expense
= 69,964 ÷ 2,873 = 24.35

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.’s interest coverage ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 exceeding 2018 level.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Selected Financial Data (US$ in millions)
Net income 57,411  55,256  59,531  48,351  45,687  53,394 
Add: Income tax expense 9,680  10,481  13,372  15,738  15,685  19,121 
Add: Interest expense 2,873  3,576  3,240  2,323  1,456  733 
Earnings before interest and tax (EBIT) 69,964  69,313  76,143  66,412  62,828  73,248 
Add: Lease costs associated with fixed payments on operating leases 1,500  1,300  1,200  1,100  939  794 
Earnings before fixed charges and tax 71,464  70,613  77,343  67,512  63,767  74,042 
 
Interest expense 2,873  3,576  3,240  2,323  1,456  733 
Lease costs associated with fixed payments on operating leases 1,500  1,300  1,200  1,100  939  794 
Fixed charges 4,373  4,876  4,440  3,423  2,395  1,527 
Solvency Ratio
Fixed charge coverage1 16.34 14.48 17.42 19.72 26.63 48.49
Benchmarks
Fixed Charge Coverage, Competitors2
Advanced Micro Devices Inc. 13.08 3.48 2.89 1.36 -1.35
Analog Devices Inc. 6.48 5.62 5.84 3.68 7.50 11.28
Applied Materials Inc. 14.48 12.35 17.53 17.08 11.43 12.84
Broadcom Inc. 1.92 2.27 6.28 3.58 -0.36 6.47
Cisco Systems Inc. 14.79 12.28 10.41 10.72 13.18 12.67
Intel Corp. 25.00 36.69 34.36 23.36 13.74
Lam Research Corp. 12.52 17.83 27.07 14.13 7.36 9.35
Micron Technology Inc. 11.10 32.90 36.32 8.97 0.47 8.29
NVIDIA Corp. 18.89 29.23 28.79 19.32 9.08
Qualcomm Inc. 8.30 10.68 1.55 5.85 17.54 32.96
Texas Instruments Inc. 21.33 21.68 33.77 39.24 30.70
Fixed Charge Coverage, Sector
Technology Hardware & Equipment 13.17 13.71 15.90 14.94 15.29
Fixed Charge Coverage, Industry
Technology 11.79 11.69 13.29 12.39 13.11

Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 10-K (filing date: 2018-11-05), 10-K (filing date: 2017-11-03), 10-K (filing date: 2016-10-26), 10-K (filing date: 2015-10-28).

1 2020 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 71,464 ÷ 4,373 = 16.34

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.’s fixed charge coverage ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.