Microsoft Excel LibreOffice Calc

Apple Inc. (AAPL)


Analysis of Solvency Ratios

Difficulty: Beginner


Solvency Ratios (Summary)

Apple Inc., solvency ratios

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Debt Ratios
Debt to equity 1.07 0.86 0.68 0.54 0.32 0.14
Debt to capital 0.52 0.46 0.40 0.35 0.24 0.12
Debt to assets 0.31 0.31 0.27 0.22 0.15 0.08
Financial leverage 3.41 2.80 2.51 2.43 2.08 1.68
Coverage Ratios
Interest coverage 23.50 28.59 43.15 99.93 140.28 369.79
Fixed charge coverage 17.42 19.72 26.63 48.49 49.58 65.22

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Apple Inc.’s financial leverage ratio increased from 2016 to 2017 and from 2017 to 2018.

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 2016 to 2017 and from 2017 to 2018.
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 2016 to 2017 and from 2017 to 2018.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Selected Financial Data (US$ in millions)
Commercial paper 11,964  11,977  8,105  8,499  6,308  — 
Current portion of term debt 8,784  6,496  3,500  2,500  —  — 
Term debt, excluding current portion 93,735  97,207  75,427  53,463  28,987  16,960 
Total debt 114,483  115,680  87,032  64,462  35,295  16,960 
 
Shareholders’ equity 107,147  134,047  128,249  119,355  111,547  123,549 
Solvency Ratio
Debt to equity1 1.07 0.86 0.68 0.54 0.32 0.14
Benchmarks
Debt to Equity, Competitors2
Applied Materials Inc. 0.78 0.57 0.46 0.60 0.25 0.27
Broadcom Inc. 0.66 0.87 0.72 0.84 1.70 0.00
Cisco Systems Inc. 0.59 0.51 0.45 0.42 0.37
Intel Corp. 0.35 0.39 0.38 0.37 0.25
NVIDIA Corp. 0.27 0.48 0.32 0.32 0.31
Qualcomm Inc. 17.64 0.71 0.37 0.35 0.00 0.00
Texas Instruments Inc. 0.56 0.39 0.34 0.41 0.45
Debt to Equity, Sector
Technology Hardware & Equipment 0.77 0.66 0.53 0.46 0.29
Debt to Equity, Industry
Technology 0.58 0.58 0.47 0.43 0.31

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

1 2018 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 114,483 ÷ 107,147 = 1.07

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.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Selected Financial Data (US$ in millions)
Commercial paper 11,964  11,977  8,105  8,499  6,308  — 
Current portion of term debt 8,784  6,496  3,500  2,500  —  — 
Term debt, excluding current portion 93,735  97,207  75,427  53,463  28,987  16,960 
Total debt 114,483  115,680  87,032  64,462  35,295  16,960 
Shareholders’ equity 107,147  134,047  128,249  119,355  111,547  123,549 
Total capital 221,630  249,727  215,281  183,817  146,842  140,509 
Solvency Ratio
Debt to capital1 0.52 0.46 0.40 0.35 0.24 0.12
Benchmarks
Debt to Capital, Competitors2
Applied Materials Inc. 0.44 0.36 0.32 0.37 0.20 0.22
Broadcom Inc. 0.40 0.46 0.42 0.46 0.63 0.00
Cisco Systems Inc. 0.37 0.34 0.31 0.30 0.27
Intel Corp. 0.26 0.28 0.28 0.27 0.20
NVIDIA Corp. 0.21 0.33 0.24 0.24 0.24
Qualcomm Inc. 0.95 0.42 0.27 0.26 0.00 0.00
Texas Instruments Inc. 0.36 0.28 0.26 0.29 0.31
Debt to Capital, Sector
Technology Hardware & Equipment 0.44 0.40 0.35 0.32 0.22
Debt to Capital, Industry
Technology 0.37 0.37 0.32 0.30 0.23

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

1 2018 Calculation
Debt to capital = Total debt ÷ Total capital
= 114,483 ÷ 221,630 = 0.52

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.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Selected Financial Data (US$ in millions)
Commercial paper 11,964  11,977  8,105  8,499  6,308  — 
Current portion of term debt 8,784  6,496  3,500  2,500  —  — 
Term debt, excluding current portion 93,735  97,207  75,427  53,463  28,987  16,960 
Total debt 114,483  115,680  87,032  64,462  35,295  16,960 
 
Total assets 365,725  375,319  321,686  290,479  231,839  207,000 
Solvency Ratio
Debt to assets1 0.31 0.31 0.27 0.22 0.15 0.08
Benchmarks
Debt to Assets, Competitors2
Applied Materials Inc. 0.30 0.27 0.23 0.30 0.15 0.16
Broadcom Inc. 0.35 0.32 0.27 0.37 0.53 0.00
Cisco Systems Inc. 0.24 0.26 0.24 0.22 0.20
Intel Corp. 0.21 0.22 0.22 0.22 0.15
NVIDIA Corp. 0.18 0.28 0.19 0.19 0.19
Qualcomm Inc. 0.50 0.33 0.22 0.22 0.00 0.00
Texas Instruments Inc. 0.30 0.23 0.22 0.25 0.26
Debt to Assets, Sector
Technology Hardware & Equipment 0.29 0.29 0.25 0.23 0.16
Debt to Assets, Industry
Technology 0.25 0.26 0.23 0.21 0.16

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

1 2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 114,483 ÷ 365,725 = 0.31

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.

Financial Leverage

Apple Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Selected Financial Data (US$ in millions)
Total assets 365,725  375,319  321,686  290,479  231,839  207,000 
Shareholders’ equity 107,147  134,047  128,249  119,355  111,547  123,549 
Solvency Ratio
Financial leverage1 3.41 2.80 2.51 2.43 2.08 1.68
Benchmarks
Financial Leverage, Competitors2
Applied Materials Inc. 2.60 2.08 2.02 2.01 1.67 1.70
Broadcom Inc. 1.88 2.68 2.64 2.25 3.23 1.18
Cisco Systems Inc. 2.52 1.96 1.91 1.90 1.86
Intel Corp. 1.72 1.79 1.71 1.69 1.65
NVIDIA Corp. 1.50 1.71 1.65 1.63 1.63
Qualcomm Inc. 35.22 2.13 1.65 1.62 1.24 1.26
Texas Instruments Inc. 1.91 1.71 1.57 1.63 1.71
Financial Leverage, Sector
Technology Hardware & Equipment 2.65 2.30 2.11 2.04 1.82
Financial Leverage, Industry
Technology 2.31 2.20 2.03 1.99 1.87

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

1 2018 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 365,725 ÷ 107,147 = 3.41

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 2016 to 2017 and from 2017 to 2018.

Interest Coverage

Apple Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Selected Financial Data (US$ in millions)
Net income 59,531  48,351  45,687  53,394  39,510  37,037 
Add: Income tax expense 13,372  15,738  15,685  19,121  13,973  13,118 
Add: Interest expense 3,240  2,323  1,456  733  384  136 
Earnings before interest and tax (EBIT) 76,143  66,412  62,828  73,248  53,867  50,291 
Solvency Ratio
Interest coverage1 23.50 28.59 43.15 99.93 140.28 369.79
Benchmarks
Interest Coverage, Competitors2
Applied Materials Inc. 21.06 19.84 13.99 16.51 16.24 4.68
Broadcom Inc. 8.24 5.02 -0.89 8.68 4.11 285.00
Cisco Systems Inc. 14.83 15.27 20.11 20.79 18.23
Intel Corp. 50.82 32.50 18.65 43.17 83.30
NVIDIA Corp. 53.39 33.84 16.81 17.36 49.86
Qualcomm Inc. 1.67 7.11 24.01 63.38 1,756.60 357.26
Texas Instruments Inc. 54.49 78.95 62.63 47.84 42.21
Interest Coverage, Sector
Technology Hardware & Equipment 20.93 23.16 25.98 52.82 65.60
Interest Coverage, Industry
Technology 21.75 21.96 24.91 39.54 48.86

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

1 2018 Calculation
Interest coverage = EBIT ÷ Interest expense
= 76,143 ÷ 3,240 = 23.50

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 2016 to 2017 and from 2017 to 2018.

Fixed Charge Coverage

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

Microsoft Excel LibreOffice Calc
Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015 Sep 27, 2014 Sep 28, 2013
Selected Financial Data (US$ in millions)
Net income 59,531  48,351  45,687  53,394  39,510  37,037 
Add: Income tax expense 13,372  15,738  15,685  19,121  13,973  13,118 
Add: Interest expense 3,240  2,323  1,456  733  384  136 
Earnings before interest and tax (EBIT) 76,143  66,412  62,828  73,248  53,867  50,291 
Add: Rent expense under all operating leases 1,200  1,100  939  794  717  645 
Earnings before fixed charges and tax 77,343  67,512  63,767  74,042  54,584  50,936 
 
Interest expense 3,240  2,323  1,456  733  384  136 
Rent expense under all operating leases 1,200  1,100  939  794  717  645 
Fixed charges 4,440  3,423  2,395  1,527  1,101  781 
Solvency Ratio
Fixed charge coverage1 17.42 19.72 26.63 48.49 49.58 65.22
Benchmarks
Fixed Charge Coverage, Competitors2
Applied Materials Inc. 17.53 17.08 11.43 12.84 11.97 3.67
Broadcom Inc. 6.28 3.58 -0.36 6.47 3.25 41.57
Cisco Systems Inc. 10.41 10.72 13.18 12.67 10.94
Intel Corp. 34.36 23.36 13.74 25.09 36.19
NVIDIA Corp. 28.79 19.32 9.08 9.08 10.41
Qualcomm Inc. 1.55 5.85 17.54 32.96 92.44 73.51
Texas Instruments Inc. 33.77 39.24 30.70 23.43 19.71
Fixed Charge Coverage, Sector
Technology Hardware & Equipment 15.46 16.26 17.37 29.36 30.65
Fixed Charge Coverage, Industry
Technology 13.10 12.92 14.02 17.44 20.38

Based on: 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), 10-K (filing date: 2014-10-27), 10-K (filing date: 2013-10-30).

1 2018 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 77,343 ÷ 4,440 = 17.42

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 2016 to 2017 and from 2017 to 2018.