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)
Debt Ratios
Coverage Ratios
Apple Inc., solvency ratios
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
The overall solvency trajectory indicates a significant move toward deleveraging and an improvement in long-term financial stability. After a period of increased leverage peaking in 2022, there is a consistent and marked reduction in debt relative to equity, assets, and total capital through 2026.
- Debt to Equity and Capital Ratios
- A peaked leverage position is observed in 2022, where the debt to equity ratio reached 2.39. Subsequently, a strong downward trend occurs, with the ratio falling to 0.73 by 2026. This pattern is mirrored in the debt to capital ratio, which remains relatively stable between 0.64 and 0.70 from 2021 to 2024 before declining to 0.42 in 2026. The inclusion of operating lease liabilities marginally increases these ratios but does not alter the fundamental trend of debt reduction.
- Debt to Assets Ratios
- A steady and linear decline is evident in the debt to assets ratio, moving from 0.36 in 2021 to 0.20 in 2026. This indicates a systemic reduction in the proportion of assets financed through debt, suggesting a strengthening of the balance sheet and a decrease in financial risk over the analyzed period.
- Financial Leverage and Coverage Analysis
- Financial leverage shows volatility in the first four years, peaking at 6.96 in 2022 and 6.41 in 2024, followed by a sharp contraction to 3.61 by 2026. Regarding debt serviceability, interest coverage exhibited a declining trend from 42.29 in 2021 to 29.92 in 2023. Conversely, fixed charge coverage shows a significant recovery and expansion, rising from a low of 20.17 in 2023 to 76.83 by 2026, signaling a vastly improved capacity to meet fixed financial obligations.
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Debt to Equity
Apple Inc., debt to equity calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 700) | 538) | 144) | 165) | 129) | 79) | |
| Commercial paper | 1,997) | 7,979) | 9,967) | 5,985) | 9,982) | 6,000) | |
| Current portion of term debt | 9,906) | 12,350) | 10,912) | 9,822) | 11,128) | 9,613) | |
| Non-current portion of term debt | 68,208) | 78,328) | 85,750) | 95,281) | 98,959) | 109,106) | |
| Non-current portion of finance leases | 756) | 692) | 752) | 859) | 812) | 769) | |
| Total debt | 81,567) | 99,887) | 107,525) | 112,112) | 121,010) | 125,567) | |
| Shareholders’ equity | 112,093) | 73,733) | 56,950) | 62,146) | 50,672) | 63,090) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.73 | 1.35 | 1.89 | 1.80 | 2.39 | 1.99 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Cisco Systems Inc. | 0.59 | 0.60 | 0.68 | 0.19 | 0.24 | 0.28 | |
| Dell Technologies Inc. | — | — | — | — | — | 19.36 | |
| Lumentum Holdings Inc. | 0.35 | 2.27 | 2.61 | 2.07 | 1.00 | 0.60 | |
| Super Micro Computer Inc. | 0.60 | 0.75 | 0.40 | 0.15 | 0.42 | 0.09 | |
| Debt to Equity, Sector | |||||||
| Technology Hardware & Equipment | — | 1.15 | 1.45 | 1.34 | 1.65 | 1.64 | |
| Debt to Equity, Industry | |||||||
| Information Technology | — | 0.52 | 0.61 | 0.66 | 0.70 | 0.83 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 81,567 ÷ 112,093 = 0.73
2 Click competitor name to see calculations.
The financial trajectory from September 2021 to September 2026 indicates a significant improvement in the solvency profile, characterized by a systematic reduction in leverage and a strengthening of the equity base.
- Total Debt Trend
- A consistent downward trend in total debt is observed throughout the period. Obligations declined steadily from 125,567 million US$ in 2021 to 81,567 million US$ in 2026, representing a sustained reduction in total borrowing.
- Shareholders' Equity Dynamics
- Equity levels exhibited volatility in the initial years, reaching a low of 50,672 million US$ in 2022. However, a period of aggressive growth followed, with equity expanding significantly to 73,733 million US$ in 2025 and peaking at 112,093 million US$ by September 2026.
- Debt to Equity Ratio Analysis
- The debt to equity ratio experienced a peak of 2.39 in 2022, driven by the contraction of shareholders' equity. Subsequently, a sharp decline is observed, with the ratio falling to 0.73 by 2026. This transition signifies a fundamental shift in the capital structure, moving from a position of high leverage to one where equity surpasses total debt, thereby reducing financial risk and enhancing long-term solvency.
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Debt to Equity (including Operating Lease Liability)
Apple Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 700) | 538) | 144) | 165) | 129) | 79) | |
| Commercial paper | 1,997) | 7,979) | 9,967) | 5,985) | 9,982) | 6,000) | |
| Current portion of term debt | 9,906) | 12,350) | 10,912) | 9,822) | 11,128) | 9,613) | |
| Non-current portion of term debt | 68,208) | 78,328) | 85,750) | 95,281) | 98,959) | 109,106) | |
| Non-current portion of finance leases | 756) | 692) | 752) | 859) | 812) | 769) | |
| Total debt | 81,567) | 99,887) | 107,525) | 112,112) | 121,010) | 125,567) | |
| Lease liabilities, operating leases (included in Other current liabilities) | 1,554) | 1,579) | 1,488) | 1,410) | 1,534) | 1,449) | |
| Lease liabilities, operating leases (included in Other non-current liabilities) | 11,358) | 10,911) | 10,046) | 10,408) | 9,936) | 9,506) | |
| Total debt (including operating lease liability) | 94,479) | 112,377) | 119,059) | 123,930) | 132,480) | 136,522) | |
| Shareholders’ equity | 112,093) | 73,733) | 56,950) | 62,146) | 50,672) | 63,090) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.84 | 1.52 | 2.09 | 1.99 | 2.61 | 2.16 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Arista Networks Inc. | — | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | |
| Cisco Systems Inc. | 0.62 | 0.63 | 0.71 | 0.21 | 0.27 | 0.31 | |
| Dell Technologies Inc. | — | — | — | — | — | 20.25 | |
| Lumentum Holdings Inc. | 0.36 | 2.30 | 2.67 | 2.12 | 1.03 | 0.63 | |
| Super Micro Computer Inc. | 0.64 | 0.80 | 0.41 | 0.16 | 0.44 | 0.11 | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | — | 1.26 | 1.57 | 1.47 | 1.79 | 1.76 | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.58 | 0.67 | 0.72 | 0.76 | 0.90 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 94,479 ÷ 112,093 = 0.84
2 Click competitor name to see calculations.
The solvency profile exhibits a significant strengthening of the capital structure over the observed six-year period. A consistent reduction in total liabilities, combined with a substantial increase in shareholders' equity in the later years, has resulted in a marked improvement in the overall debt-to-equity position.
- Total Debt Trends
- A continuous downward trajectory is observed in total debt, including operating lease liabilities. From a high of 136,522 million US dollars in September 2021, obligations decreased every consecutive year, reaching 94,479 million US dollars by September 2026. This sustained decline indicates a systematic reduction in long-term financial obligations.
- Shareholders' Equity Dynamics
- Equity levels experienced initial volatility, reaching a low of 50,672 million US dollars in September 2022 and fluctuating through September 2024. However, a period of aggressive growth followed, with equity increasing to 73,733 million US dollars in 2025 and further expanding to 112,093 million US dollars by September 2026. This represents a substantial increase in the net asset value available to shareholders.
- Debt to Equity Ratio Analysis
- The debt-to-equity ratio peaked at 2.61 in September 2022, reflecting a period of elevated leverage. Following this peak, the ratio trended downward, falling to 1.52 in September 2025 and further dropping to 0.84 by September 2026. The transition from a ratio well above 2.0 to a value below 1.0 signifies a fundamental shift in the financing strategy, moving from a debt-reliant structure to one where equity exceeds total debt, thereby enhancing long-term solvency and reducing financial risk.
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Debt to Capital
Apple Inc., debt to capital calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 700) | 538) | 144) | 165) | 129) | 79) | |
| Commercial paper | 1,997) | 7,979) | 9,967) | 5,985) | 9,982) | 6,000) | |
| Current portion of term debt | 9,906) | 12,350) | 10,912) | 9,822) | 11,128) | 9,613) | |
| Non-current portion of term debt | 68,208) | 78,328) | 85,750) | 95,281) | 98,959) | 109,106) | |
| Non-current portion of finance leases | 756) | 692) | 752) | 859) | 812) | 769) | |
| Total debt | 81,567) | 99,887) | 107,525) | 112,112) | 121,010) | 125,567) | |
| Shareholders’ equity | 112,093) | 73,733) | 56,950) | 62,146) | 50,672) | 63,090) | |
| Total capital | 193,660) | 173,620) | 164,475) | 174,258) | 171,682) | 188,657) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.42 | 0.58 | 0.65 | 0.64 | 0.70 | 0.67 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Cisco Systems Inc. | 0.37 | 0.37 | 0.41 | 0.16 | 0.19 | 0.22 | |
| Dell Technologies Inc. | 1.09 | 1.06 | 1.10 | 1.12 | 1.07 | 0.95 | |
| Lumentum Holdings Inc. | 0.26 | 0.69 | 0.72 | 0.67 | 0.50 | 0.37 | |
| Super Micro Computer Inc. | 0.38 | 0.43 | 0.29 | 0.13 | 0.30 | 0.08 | |
| Debt to Capital, Sector | |||||||
| Technology Hardware & Equipment | — | 0.54 | 0.59 | 0.57 | 0.62 | 0.62 | |
| Debt to Capital, Industry | |||||||
| Information Technology | — | 0.34 | 0.38 | 0.40 | 0.41 | 0.45 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 81,567 ÷ 193,660 = 0.42
2 Click competitor name to see calculations.
A consistent reduction in long-term solvency risk is evident over the analyzed six-year period, characterized by a steady decline in total debt and a significant improvement in the debt to capital ratio by the end of the term.
- Total Debt Analysis
- A continuous downward trend in total debt is observed, falling from 125,567 million US$ in September 2021 to 81,567 million US$ by September 2026. This represents a systemic reduction in borrowed capital throughout the entire period.
- Total Capital Volatility
- Total capital exhibited fluctuations between 2021 and 2024, reaching a low of 164,475 million US$ in September 2024. However, a recovery phase followed, with capital increasing to 193,660 million US$ by September 2026, indicating a strengthening of the overall capital base in the final years.
- Debt to Capital Ratio Trends
- The debt to capital ratio peaked at 0.70 in September 2022 before entering a period of general decline. A notable acceleration in the reduction of this ratio occurred between September 2025 (0.58) and September 2026 (0.42), marking the lowest point of leverage in the reported timeframe.
The convergence of decreasing total debt and increasing total capital in the final two years suggests a strategic shift toward a more conservative capital structure. This transition significantly lowers the proportion of debt relative to total capital, thereby enhancing the organization's long-term financial stability.
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Debt to Capital (including Operating Lease Liability)
Apple Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 700) | 538) | 144) | 165) | 129) | 79) | |
| Commercial paper | 1,997) | 7,979) | 9,967) | 5,985) | 9,982) | 6,000) | |
| Current portion of term debt | 9,906) | 12,350) | 10,912) | 9,822) | 11,128) | 9,613) | |
| Non-current portion of term debt | 68,208) | 78,328) | 85,750) | 95,281) | 98,959) | 109,106) | |
| Non-current portion of finance leases | 756) | 692) | 752) | 859) | 812) | 769) | |
| Total debt | 81,567) | 99,887) | 107,525) | 112,112) | 121,010) | 125,567) | |
| Lease liabilities, operating leases (included in Other current liabilities) | 1,554) | 1,579) | 1,488) | 1,410) | 1,534) | 1,449) | |
| Lease liabilities, operating leases (included in Other non-current liabilities) | 11,358) | 10,911) | 10,046) | 10,408) | 9,936) | 9,506) | |
| Total debt (including operating lease liability) | 94,479) | 112,377) | 119,059) | 123,930) | 132,480) | 136,522) | |
| Shareholders’ equity | 112,093) | 73,733) | 56,950) | 62,146) | 50,672) | 63,090) | |
| Total capital (including operating lease liability) | 206,572) | 186,110) | 176,009) | 186,076) | 183,152) | 199,612) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.46 | 0.60 | 0.68 | 0.67 | 0.72 | 0.68 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Arista Networks Inc. | — | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | |
| Cisco Systems Inc. | 0.38 | 0.39 | 0.41 | 0.18 | 0.21 | 0.24 | |
| Dell Technologies Inc. | 1.08 | 1.06 | 1.10 | 1.11 | 1.06 | 0.95 | |
| Lumentum Holdings Inc. | 0.26 | 0.70 | 0.73 | 0.68 | 0.51 | 0.39 | |
| Super Micro Computer Inc. | 0.39 | 0.45 | 0.29 | 0.14 | 0.30 | 0.10 | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | — | 0.56 | 0.61 | 0.59 | 0.64 | 0.64 | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.37 | 0.40 | 0.42 | 0.43 | 0.47 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 94,479 ÷ 206,572 = 0.46
2 Click competitor name to see calculations.
The company's solvency profile demonstrates a progressive reduction in financial leverage over the analyzed period. While the debt-to-capital ratio remained relatively stable through 2024, a significant downward trend emerged in the subsequent two years, indicating a strengthening of the long-term financial position and a shift toward a more conservative capital structure.
- Total Debt Trends
- A consistent and uninterrupted decline in total debt, including operating lease liabilities, is observed from September 2021 through September 2026. Total obligations decreased from US$ 136,522 million to US$ 94,479 million, reflecting a disciplined reduction in borrowed capital over the six-year span.
- Total Capital Dynamics
- Total capital exhibited volatility between 2021 and 2024, fluctuating from a high of US$ 199,612 million to a low of US$ 176,009 million. However, a recovery and growth phase followed, with total capital increasing to US$ 206,572 million by September 2026, surpassing the initial 2021 levels.
- Debt to Capital Ratio Analysis
- The debt to capital ratio remained range-bound between 0.67 and 0.72 from 2021 to 2024, suggesting a stable leverage strategy during this window. A distinct pivot occurred in the final two years of the period, where the ratio dropped to 0.60 in 2025 and further to 0.46 by September 2026. This sharp decline is attributed to the convergence of decreasing total debt and increasing total capital, substantially reducing the proportion of debt within the overall capital base.
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Debt to Assets
Apple Inc., debt to assets calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 700) | 538) | 144) | 165) | 129) | 79) | |
| Commercial paper | 1,997) | 7,979) | 9,967) | 5,985) | 9,982) | 6,000) | |
| Current portion of term debt | 9,906) | 12,350) | 10,912) | 9,822) | 11,128) | 9,613) | |
| Non-current portion of term debt | 68,208) | 78,328) | 85,750) | 95,281) | 98,959) | 109,106) | |
| Non-current portion of finance leases | 756) | 692) | 752) | 859) | 812) | 769) | |
| Total debt | 81,567) | 99,887) | 107,525) | 112,112) | 121,010) | 125,567) | |
| Total assets | 404,548) | 359,241) | 364,980) | 352,583) | 352,755) | 351,002) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.20 | 0.28 | 0.29 | 0.32 | 0.34 | 0.36 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Cisco Systems Inc. | 0.23 | 0.23 | 0.25 | 0.08 | 0.10 | 0.12 | |
| Dell Technologies Inc. | 0.31 | 0.31 | 0.32 | 0.33 | 0.29 | 0.39 | |
| Lumentum Holdings Inc. | 0.22 | 0.61 | 0.64 | 0.61 | 0.45 | 0.33 | |
| Super Micro Computer Inc. | 0.29 | 0.34 | 0.22 | 0.08 | 0.19 | 0.04 | |
| Debt to Assets, Sector | |||||||
| Technology Hardware & Equipment | — | 0.27 | 0.28 | 0.27 | 0.29 | 0.32 | |
| Debt to Assets, Industry | |||||||
| Information Technology | — | 0.23 | 0.25 | 0.26 | 0.26 | 0.29 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 81,567 ÷ 404,548 = 0.20
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent improvement over the observed six-year period. A systematic reduction in leverage is evident, characterized by a steady decline in the debt-to-assets ratio, which indicates a strengthening financial position and a reduced reliance on borrowed capital to fund assets.
- Total Debt Trend
- A continuous downward trajectory is observed in total debt, which decreased from US$ 125,567 million in September 2021 to US$ 81,567 million by September 2026. This sustained reduction suggests a strategic priority toward deleveraging the balance sheet.
- Total Assets Trend
- Total assets demonstrated a general upward trend, growing from US$ 351,002 million in 2021 to US$ 404,548 million in 2026. While minor fluctuations occurred in 2023 and 2025, the overall expansion of the asset base contributed to the improvement of the solvency ratio.
- Debt to Assets Ratio Interpretation
- The debt-to-assets ratio declined linearly from 0.36 in 2021 to 0.20 in 2026. This contraction is the result of the simultaneous occurrence of decreasing absolute debt levels and increasing total assets, marking a significant shift toward a more conservative capital structure.
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Debt to Assets (including Operating Lease Liability)
Apple Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of finance leases | 700) | 538) | 144) | 165) | 129) | 79) | |
| Commercial paper | 1,997) | 7,979) | 9,967) | 5,985) | 9,982) | 6,000) | |
| Current portion of term debt | 9,906) | 12,350) | 10,912) | 9,822) | 11,128) | 9,613) | |
| Non-current portion of term debt | 68,208) | 78,328) | 85,750) | 95,281) | 98,959) | 109,106) | |
| Non-current portion of finance leases | 756) | 692) | 752) | 859) | 812) | 769) | |
| Total debt | 81,567) | 99,887) | 107,525) | 112,112) | 121,010) | 125,567) | |
| Lease liabilities, operating leases (included in Other current liabilities) | 1,554) | 1,579) | 1,488) | 1,410) | 1,534) | 1,449) | |
| Lease liabilities, operating leases (included in Other non-current liabilities) | 11,358) | 10,911) | 10,046) | 10,408) | 9,936) | 9,506) | |
| Total debt (including operating lease liability) | 94,479) | 112,377) | 119,059) | 123,930) | 132,480) | 136,522) | |
| Total assets | 404,548) | 359,241) | 364,980) | 352,583) | 352,755) | 351,002) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.23 | 0.31 | 0.33 | 0.35 | 0.38 | 0.39 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.01 | 0.01 | 0.01 | |
| Cisco Systems Inc. | 0.24 | 0.24 | 0.26 | 0.09 | 0.11 | 0.13 | |
| Dell Technologies Inc. | 0.32 | 0.32 | 0.33 | 0.34 | 0.30 | 0.41 | |
| Lumentum Holdings Inc. | 0.23 | 0.62 | 0.65 | 0.62 | 0.47 | 0.35 | |
| Super Micro Computer Inc. | 0.31 | 0.36 | 0.22 | 0.08 | 0.19 | 0.05 | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Technology Hardware & Equipment | — | 0.29 | 0.31 | 0.30 | 0.31 | 0.34 | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | — | 0.26 | 0.27 | 0.28 | 0.29 | 0.31 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 94,479 ÷ 404,548 = 0.23
2 Click competitor name to see calculations.
The solvency profile exhibits a consistent strengthening over the six-year period analyzed. A systematic reduction in total debt coupled with a general expansion of the asset base has resulted in a meaningful and steady decline in the debt-to-assets ratio.
- Total Debt Trajectory
- Total debt, including operating lease liabilities, demonstrates a continuous year-over-year decrease. From a peak of 136,522 million US$ in September 2021, the figure declines steadily to 94,479 million US$ by September 2026. This indicates a sustained deleveraging process throughout the observed timeframe.
- Asset Base Evolution
- Total assets remained relatively stable between 2021 and 2023, fluctuating slightly around 352,000 million US$. A moderate increase was observed in 2024, followed by a minor contraction in 2025, and culminating in a substantial increase to 404,548 million US$ in 2026. This expansion of assets, particularly in the final year, provides a broader cushion against outstanding liabilities.
- Debt to Assets Ratio Interpretation
- The debt-to-assets ratio reflects a clear downward trend, moving from 0.39 in 2021 to 0.23 in 2026. The most pronounced improvement occurs between 2025 and 2026, where the ratio drops from 0.31 to 0.23. This progression signifies a significant reduction in financial leverage and an enhanced solvency position, as a smaller proportion of total assets is financed through debt.
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Financial Leverage
Apple Inc., financial leverage calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 404,548) | 359,241) | 364,980) | 352,583) | 352,755) | 351,002) | |
| Shareholders’ equity | 112,093) | 73,733) | 56,950) | 62,146) | 50,672) | 63,090) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.61 | 4.87 | 6.41 | 5.67 | 6.96 | 5.56 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Arista Networks Inc. | — | 1.57 | 1.41 | 1.38 | 1.39 | 1.44 | |
| Cisco Systems Inc. | 2.58 | 2.61 | 2.74 | 2.30 | 2.36 | 2.36 | |
| Dell Technologies Inc. | — | — | — | — | — | 49.78 | |
| Lumentum Holdings Inc. | 1.57 | 3.72 | 4.11 | 3.42 | 2.22 | 1.80 | |
| Super Micro Computer Inc. | 2.07 | 2.22 | 1.81 | 1.86 | 2.25 | 2.05 | |
| Financial Leverage, Sector | |||||||
| Technology Hardware & Equipment | — | 4.31 | 5.15 | 4.94 | 5.71 | 5.12 | |
| Financial Leverage, Industry | |||||||
| Information Technology | — | 2.25 | 2.44 | 2.53 | 2.65 | 2.87 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 404,548 ÷ 112,093 = 3.61
2 Click competitor name to see calculations.
The analysis of solvency indicators reveals a fluctuating but ultimately improving financial leverage profile over the period from September 2021 to September 2026. While the leverage ratio experienced volatility in the initial years, a pronounced downward trend is evident in the later stages, indicating a shift toward a more equity-heavy capital structure.
- Total Assets Trend
- Total assets remained relatively stable between 2021 and 2023, hovering around 351 to 352 billion US$. A moderate increase occurred in 2024, followed by a slight contraction in 2025. However, a significant expansion is observed for 2026, with assets reaching 404,548 million US$, representing the highest valuation in the observed period.
- Shareholders' Equity Dynamics
- Equity levels exhibited instability between 2021 and 2024, with a notable dip to 50,672 million US$ in 2022 and another decline to 56,950 million US$ in 2024. This trend reverses sharply starting in 2025, with equity rising to 73,733 million US$ and subsequently surging to 112,093 million US$ by 2026, reflecting a substantial strengthening of the internal capital base.
- Financial Leverage Ratio Analysis
- The financial leverage ratio peaked at 6.96 in 2022, coinciding with the period of lowest shareholders' equity. Following this peak, the ratio fluctuated before entering a period of steady decline. The ratio decreased to 4.87 in 2025 and further dropped to 3.61 by 2026. This contraction suggests a strategic deleveraging process or a significant accumulation of retained earnings, thereby reducing the proportion of debt used to finance total assets.
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Interest Coverage
Apple Inc., interest coverage calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 132,175) | 112,010) | 93,736) | 96,995) | 99,803) | 94,680) | |
| Add: Income tax expense | 27,062) | 20,719) | 29,749) | 16,741) | 19,300) | 14,527) | |
| Add: Interest expense | —) | —) | —) | 3,933) | 2,931) | 2,645) | |
| Earnings before interest and tax (EBIT) | 159,237) | 132,729) | 123,485) | 117,669) | 122,034) | 111,852) | |
| Solvency Ratio | |||||||
| Interest coverage1 | — | — | — | 29.92 | 41.64 | 42.29 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Arista Networks Inc. | — | — | — | — | — | — | |
| Cisco Systems Inc. | 11.89 | 7.97 | 13.16 | 36.87 | 41.21 | 31.56 | |
| Dell Technologies Inc. | 5.66 | 4.62 | 3.59 | 3.64 | 4.84 | 2.54 | |
| Lumentum Holdings Inc. | -328.03 | -6.75 | -11.00 | -1.88 | 3.93 | 7.94 | |
| Super Micro Computer Inc. | 15.32 | 21.24 | 63.83 | 72.55 | 53.71 | 48.81 | |
| Interest Coverage, Sector | |||||||
| Technology Hardware & Equipment | — | 51.24 | 57.12 | 25.05 | 29.79 | 24.05 | |
| Interest Coverage, Industry | |||||||
| Information Technology | — | 25.81 | 19.15 | 17.37 | 22.18 | 19.66 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Interest coverage = EBIT ÷ Interest expense
= 159,237 ÷ 0 = —
2 Click competitor name to see calculations.
An analysis of the solvency metrics indicates a period of significant growth in operating profitability coupled with rising borrowing costs, resulting in a downward trend in the interest coverage ratio between 2021 and 2023.
- Earnings Before Interest and Tax (EBIT)
- A consistent upward trajectory in EBIT is observed over the six-year period. Starting at 111,852 million US dollars in 2021, operating earnings grew to 159,237 million US dollars by 2026. Although a marginal contraction occurred in 2023, the subsequent years show accelerated growth, indicating a strong capacity to generate operational cash flow.
- Interest Expense
- Between 2021 and 2023, interest expenses exhibited a steady increase, rising from 2,645 million US dollars to 3,933 million US dollars. The most pronounced increase occurred between 2022 and 2023, where expenses rose by approximately 34%, suggesting either an increase in total debt load or higher prevailing interest rates during that period.
- Interest Coverage Ratio
- The interest coverage ratio declined from 42.29 in 2021 to 29.92 in 2023. This contraction is primarily attributed to the rate of increase in interest expenses outpacing the growth of EBIT during the 2022-2023 window. Despite this decline, the ratio remains substantially high, confirming that operating profits are more than sufficient to meet all interest obligations, thereby maintaining a robust solvency position.
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Fixed Charge Coverage
Apple Inc., fixed charge coverage calculation, comparison to benchmarks
| Sep 26, 2026 | Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 132,175) | 112,010) | 93,736) | 96,995) | 99,803) | 94,680) | |
| Add: Income tax expense | 27,062) | 20,719) | 29,749) | 16,741) | 19,300) | 14,527) | |
| Add: Interest expense | —) | —) | —) | 3,933) | 2,931) | 2,645) | |
| Earnings before interest and tax (EBIT) | 159,237) | 132,729) | 123,485) | 117,669) | 122,034) | 111,852) | |
| Add: Lease costs associated with fixed payments on operating leases | 2,100) | 2,100) | 2,000) | 2,000) | 1,900) | 1,700) | |
| Earnings before fixed charges and tax | 161,337) | 134,829) | 125,485) | 119,669) | 123,934) | 113,552) | |
| Interest expense | —) | —) | —) | 3,933) | 2,931) | 2,645) | |
| Lease costs associated with fixed payments on operating leases | 2,100) | 2,100) | 2,000) | 2,000) | 1,900) | 1,700) | |
| Fixed charges | 2,100) | 2,100) | 2,000) | 5,933) | 4,831) | 4,345) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 76.83 | 64.20 | 62.74 | 20.17 | 25.65 | 26.13 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Arista Networks Inc. | — | — | — | 73.83 | 49.20 | 31.02 | |
| Cisco Systems Inc. | 8.98 | 6.32 | 9.58 | 18.98 | 20.30 | 16.92 | |
| Dell Technologies Inc. | 5.04 | 3.99 | 3.17 | 3.14 | 4.16 | 2.26 | |
| Lumentum Holdings Inc. | -202.77 | -3.85 | -7.02 | -1.05 | 3.52 | 6.73 | |
| Super Micro Computer Inc. | 11.95 | 15.61 | 42.45 | 40.95 | 24.03 | 12.52 | |
| Fixed Charge Coverage, Sector | |||||||
| Technology Hardware & Equipment | — | 26.72 | 28.12 | 17.13 | 19.64 | 16.52 | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | — | 15.38 | 12.29 | 11.23 | 13.28 | 12.13 | |
Based on: 10-K (reporting date: 2026-09-26), 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25).
1 2026 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 161,337 ÷ 2,100 = 76.83
2 Click competitor name to see calculations.
The organization exhibits a robust solvency profile, characterized by a significant increase in the capacity to meet fixed financial obligations over the observed period. While a period of contraction occurred between 2021 and 2023, a substantial structural improvement in the coverage ratio is evident from 2024 onward.
- Earnings Before Fixed Charges and Tax
- A consistent growth trajectory is observed in earnings, rising from 113,552 million US$ in 2021 to 161,337 million US$ by 2026. Despite a marginal contraction in 2023, the overall trend reflects strong operational performance and an increase in the funds available to service fixed obligations.
- Fixed Charge Obligations
- Fixed charges experienced an upward trend through 2023, peaking at 5,933 million US$. However, a sharp reduction is noted in 2024, where charges fell to 2,000 million US$ and remained relatively stable at approximately 2,100 million US$ through 2026. This suggests a significant reduction in fixed financial commitments or a strategic restructuring of debt.
- Fixed Charge Coverage Ratio
- The coverage ratio initially declined from 26.13 in 2021 to a low of 20.17 in 2023, correlated with the increase in fixed charges. Following 2023, the ratio experienced a sharp inflection point, increasing to 62.74 in 2024 and continuing to climb to 76.83 by 2026. This expansion is the result of the dual impact of rising earnings and substantially lower fixed charges, indicating a vastly improved margin of safety and a diminished risk of insolvency.
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