Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Apple Inc., solvency ratios

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Debt Ratios
Debt to equity 2.39 1.99 1.73 1.19 1.07 0.86
Debt to equity (including operating lease liability) 2.61 2.16 1.87 1.19 1.07 0.86
Debt to capital 0.70 0.67 0.63 0.54 0.52 0.46
Debt to capital (including operating lease liability) 0.72 0.68 0.65 0.54 0.52 0.46
Debt to assets 0.34 0.36 0.35 0.32 0.31 0.31
Debt to assets (including operating lease liability) 0.38 0.39 0.38 0.32 0.31 0.31
Financial leverage 6.96 5.56 4.96 3.74 3.41 2.80
Coverage Ratios
Interest coverage 41.64 42.29 24.35 19.38 23.50 28.59
Fixed charge coverage 25.65 26.13 16.34 14.48 17.42 19.72

Based on: 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), 10-K (reporting date: 2017-09-30).

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 2020 to 2021 and from 2021 to 2022.
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 2020 to 2021 and from 2021 to 2022.
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 2020 to 2021 and from 2021 to 2022.
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 2020 to 2021 and from 2021 to 2022.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Apple Inc. debt to assets ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
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) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Apple Inc. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Apple Inc. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Debt to Equity

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current portion of finance leases 129 79 24
Commercial paper 9,982 6,000 4,996 5,980 11,964 11,977
Current portion of term debt 11,128 9,613 8,773 10,260 8,784 6,496
Non-current portion of term debt 98,959 109,106 98,667 91,807 93,735 97,207
Non-current portion of finance leases 812 769 637
Total debt 121,010 125,567 113,097 108,047 114,483 115,680
 
Shareholders’ equity 50,672 63,090 65,339 90,488 107,147 134,047
Solvency Ratio
Debt to equity1 2.39 1.99 1.73 1.19 1.07 0.86
Benchmarks
Debt to Equity, Competitors2
Cisco Systems Inc. 0.24 0.28 0.38 0.73 0.59 0.51
Enphase Energy Inc. 2.41 0.68 0.39 14.12
Debt to Equity, Sector
Technology Hardware & Equipment 1.32 1.23 1.07 0.93 0.75
Debt to Equity, Industry
Information Technology 0.76 0.87 0.84 0.79 0.78

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 121,010 ÷ 50,672 = 2.39

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 2020 to 2021 and from 2021 to 2022.

Debt to Equity (including Operating Lease Liability)

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current portion of finance leases 129 79 24
Commercial paper 9,982 6,000 4,996 5,980 11,964 11,977
Current portion of term debt 11,128 9,613 8,773 10,260 8,784 6,496
Non-current portion of term debt 98,959 109,106 98,667 91,807 93,735 97,207
Non-current portion of finance leases 812 769 637
Total debt 121,010 125,567 113,097 108,047 114,483 115,680
Lease liabilities, operating leases (included in Other current liabilities) 1,534 1,449 1,436
Lease liabilities, operating leases (included in Other non-current liabilities) 9,936 9,506 7,745
Total debt (including operating lease liability) 132,480 136,522 122,278 108,047 114,483 115,680
 
Shareholders’ equity 50,672 63,090 65,339 90,488 107,147 134,047
Solvency Ratio
Debt to equity (including operating lease liability)1 2.61 2.16 1.87 1.19 1.07 0.86
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Cisco Systems Inc. 0.27 0.31 0.41 0.73 0.59 0.51
Enphase Energy Inc. 2.45 0.72 0.43 14.12
Debt to Equity (including Operating Lease Liability), Sector
Technology Hardware & Equipment 1.43 1.33 1.07 0.93 0.75
Debt to Equity (including Operating Lease Liability), Industry
Information Technology 0.82 0.93 0.87 0.81 0.78

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 132,480 ÷ 50,672 = 2.61

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 2020 to 2021 and from 2021 to 2022.

Debt to Capital

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current portion of finance leases 129 79 24
Commercial paper 9,982 6,000 4,996 5,980 11,964 11,977
Current portion of term debt 11,128 9,613 8,773 10,260 8,784 6,496
Non-current portion of term debt 98,959 109,106 98,667 91,807 93,735 97,207
Non-current portion of finance leases 812 769 637
Total debt 121,010 125,567 113,097 108,047 114,483 115,680
Shareholders’ equity 50,672 63,090 65,339 90,488 107,147 134,047
Total capital 171,682 188,657 178,436 198,535 221,630 249,727
Solvency Ratio
Debt to capital1 0.70 0.67 0.63 0.54 0.52 0.46
Benchmarks
Debt to Capital, Competitors2
Cisco Systems Inc. 0.19 0.22 0.28 0.42 0.37 0.34
Enphase Energy Inc. 0.71 0.41 0.28 0.93 1.22
Debt to Capital, Sector
Technology Hardware & Equipment 0.57 0.55 0.52 0.48 0.43
Debt to Capital, Industry
Information Technology 0.43 0.46 0.46 0.44 0.44

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 121,010 ÷ 171,682 = 0.70

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 2020 to 2021 and from 2021 to 2022.

Debt to Capital (including Operating Lease Liability)

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current portion of finance leases 129 79 24
Commercial paper 9,982 6,000 4,996 5,980 11,964 11,977
Current portion of term debt 11,128 9,613 8,773 10,260 8,784 6,496
Non-current portion of term debt 98,959 109,106 98,667 91,807 93,735 97,207
Non-current portion of finance leases 812 769 637
Total debt 121,010 125,567 113,097 108,047 114,483 115,680
Lease liabilities, operating leases (included in Other current liabilities) 1,534 1,449 1,436
Lease liabilities, operating leases (included in Other non-current liabilities) 9,936 9,506 7,745
Total debt (including operating lease liability) 132,480 136,522 122,278 108,047 114,483 115,680
Shareholders’ equity 50,672 63,090 65,339 90,488 107,147 134,047
Total capital (including operating lease liability) 183,152 199,612 187,617 198,535 221,630 249,727
Solvency Ratio
Debt to capital (including operating lease liability)1 0.72 0.68 0.65 0.54 0.52 0.46
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Cisco Systems Inc. 0.21 0.24 0.29 0.42 0.37 0.34
Enphase Energy Inc. 0.71 0.42 0.30 0.93 1.22
Debt to Capital (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.59 0.57 0.52 0.48 0.43
Debt to Capital (including Operating Lease Liability), Industry
Information Technology 0.45 0.48 0.47 0.45 0.44

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 132,480 ÷ 183,152 = 0.72

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 2020 to 2021 and from 2021 to 2022.

Debt to Assets

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current portion of finance leases 129 79 24
Commercial paper 9,982 6,000 4,996 5,980 11,964 11,977
Current portion of term debt 11,128 9,613 8,773 10,260 8,784 6,496
Non-current portion of term debt 98,959 109,106 98,667 91,807 93,735 97,207
Non-current portion of finance leases 812 769 637
Total debt 121,010 125,567 113,097 108,047 114,483 115,680
 
Total assets 352,755 351,002 323,888 338,516 365,725 375,319
Solvency Ratio
Debt to assets1 0.34 0.36 0.35 0.32 0.31 0.31
Benchmarks
Debt to Assets, Competitors2
Cisco Systems Inc. 0.10 0.12 0.15 0.25 0.24 0.26
Enphase Energy Inc. 0.50 0.28 0.15 0.32 0.29
Debt to Assets, Sector
Technology Hardware & Equipment 0.31 0.30 0.30 0.30 0.30
Debt to Assets, Industry
Information Technology 0.28 0.30 0.30 0.29 0.30

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 121,010 ÷ 352,755 = 0.34

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 deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Debt to Assets (including Operating Lease Liability)

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Current portion of finance leases 129 79 24
Commercial paper 9,982 6,000 4,996 5,980 11,964 11,977
Current portion of term debt 11,128 9,613 8,773 10,260 8,784 6,496
Non-current portion of term debt 98,959 109,106 98,667 91,807 93,735 97,207
Non-current portion of finance leases 812 769 637
Total debt 121,010 125,567 113,097 108,047 114,483 115,680
Lease liabilities, operating leases (included in Other current liabilities) 1,534 1,449 1,436
Lease liabilities, operating leases (included in Other non-current liabilities) 9,936 9,506 7,745
Total debt (including operating lease liability) 132,480 136,522 122,278 108,047 114,483 115,680
 
Total assets 352,755 351,002 323,888 338,516 365,725 375,319
Solvency Ratio
Debt to assets (including operating lease liability)1 0.38 0.39 0.38 0.32 0.31 0.31
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Cisco Systems Inc. 0.11 0.13 0.16 0.25 0.24 0.26
Enphase Energy Inc. 0.51 0.29 0.17 0.32 0.29
Debt to Assets (including Operating Lease Liability), Sector
Technology Hardware & Equipment 0.33 0.33 0.30 0.30 0.30
Debt to Assets (including Operating Lease Liability), Industry
Information Technology 0.30 0.32 0.31 0.29 0.30

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 132,480 ÷ 352,755 = 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. debt to assets ratio (including operating lease liability) deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Financial Leverage

Apple Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Total assets 352,755 351,002 323,888 338,516 365,725 375,319
Shareholders’ equity 50,672 63,090 65,339 90,488 107,147 134,047
Solvency Ratio
Financial leverage1 6.96 5.56 4.96 3.74 3.41 2.80
Benchmarks
Financial Leverage, Competitors2
Cisco Systems Inc. 2.36 2.36 2.50 2.91 2.52 1.96
Enphase Energy Inc. 4.83 2.48 2.62 43.72
Financial Leverage, Sector
Technology Hardware & Equipment 4.30 4.05 3.51 3.16 2.52
Financial Leverage, Industry
Information Technology 2.73 2.91 2.85 2.74 2.57

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 352,755 ÷ 50,672 = 6.96

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. financial leverage ratio increased from 2020 to 2021 and from 2021 to 2022.

Interest Coverage

Apple Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Net income 99,803 94,680 57,411 55,256 59,531 48,351
Add: Income tax expense 19,300 14,527 9,680 10,481 13,372 15,738
Add: Interest expense 2,931 2,645 2,873 3,576 3,240 2,323
Earnings before interest and tax (EBIT) 122,034 111,852 69,964 69,313 76,143 66,412
Solvency Ratio
Interest coverage1 41.64 42.29 24.35 19.38 23.50 28.59
Benchmarks
Interest Coverage, Competitors2
Cisco Systems Inc. 41.21 31.56 24.88 17.96 14.83 15.27
Enphase Energy Inc. 3.68 6.69 10.30 0.04 -4.52
Interest Coverage, Sector
Technology Hardware & Equipment 40.24 24.33 19.09 21.49 24.91
Interest Coverage, Industry
Information Technology 23.33 17.28 16.67 18.21 17.30

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 122,034 ÷ 2,931 = 41.64

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Fixed Charge Coverage

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

Microsoft Excel
Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017
Selected Financial Data (US$ in millions)
Net income 99,803 94,680 57,411 55,256 59,531 48,351
Add: Income tax expense 19,300 14,527 9,680 10,481 13,372 15,738
Add: Interest expense 2,931 2,645 2,873 3,576 3,240 2,323
Earnings before interest and tax (EBIT) 122,034 111,852 69,964 69,313 76,143 66,412
Add: Lease costs associated with fixed payments on operating leases 1,900 1,700 1,500 1,300 1,200 1,100
Earnings before fixed charges and tax 123,934 113,552 71,464 70,613 77,343 67,512
 
Interest expense 2,931 2,645 2,873 3,576 3,240 2,323
Lease costs associated with fixed payments on operating leases 1,900 1,700 1,500 1,300 1,200 1,100
Fixed charges 4,831 4,345 4,373 4,876 4,440 3,423
Solvency Ratio
Fixed charge coverage1 25.65 26.13 16.34 14.48 17.42 19.72
Benchmarks
Fixed Charge Coverage, Competitors2
Cisco Systems Inc. 20.30 16.92 14.79 12.28 10.41 10.72
Enphase Energy Inc. 3.32 5.53 7.56 0.26 -3.12
Fixed Charge Coverage, Sector
Technology Hardware & Equipment 24.44 16.00 14.01 15.72 17.25
Fixed Charge Coverage, Industry
Information Technology 13.99 10.72 11.05 11.88 11.12

Based on: 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), 10-K (reporting date: 2017-09-30).

1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 123,934 ÷ 4,831 = 25.65

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 improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.