Microsoft Excel LibreOffice Calc

Long-term Debt and Solvency Analysis

Difficulty: Beginner


Ratios (Summary)

Apple Inc., debt and 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 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
Interest coverage 23.50 28.59 43.15 99.93 140.28 369.79

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).

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

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.

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 (USD $ 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 
Ratio
Debt to equity1 1.07 0.86 0.68 0.54 0.32 0.14
Benchmarks
Debt to Equity, Competitors
Applied Materials Inc. 0.57 0.46 0.60 0.25 0.27
Broadcom Inc. 0.87 0.72 0.84 1.70 0.00
Cisco Systems Inc. 0.59 0.51 0.45 0.42 0.37 0.27
HP Inc. 0.89 0.73 0.83
Intel Corp. 0.39 0.38 0.37 0.25 0.23
NVIDIA Corp. 0.27 0.48 0.32 0.32 0.31 0.00
Qualcomm Inc. 17.64 0.71 0.37 0.35 0.00 0.00
Texas Instruments Inc. 0.39 0.34 0.41 0.45 0.48
Debt to Equity, Sector
Technology Hardware & Equipment 0.69 0.56 0.50 0.33 0.23
Debt to Equity, Industry
Technology 0.60 0.49 0.45 0.32 0.27

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).

2018 Calculations

1 Debt to equity = Total debt ÷ Shareholders' equity
= 114,483 ÷ 107,147 = 1.07

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 2016 to 2017 and from 2017 to 2018.

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 (USD $ 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 
Ratio
Debt to capital1 0.52 0.46 0.40 0.35 0.24 0.12
Benchmarks
Debt to Capital, Competitors
Applied Materials Inc. 0.36 0.32 0.37 0.20 0.22
Broadcom Inc. 0.46 0.42 0.46 0.63 0.00
Cisco Systems Inc. 0.37 0.34 0.31 0.30 0.27 0.22
HP Inc. 1.77 2.32 0.47 0.42 0.45
Intel Corp. 0.28 0.28 0.27 0.20 0.19
NVIDIA Corp. 0.21 0.33 0.24 0.24 0.24 0.00
Qualcomm Inc. 0.95 0.42 0.27 0.26 0.00 0.00
Texas Instruments Inc. 0.28 0.26 0.29 0.31 0.32
Debt to Capital, Sector
Technology Hardware & Equipment 0.41 0.36 0.33 0.25 0.19
Debt to Capital, Industry
Technology 0.37 0.33 0.31 0.24 0.21

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).

2018 Calculations

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

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 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 (USD $ 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 
Ratio
Interest coverage1 23.50 28.59 43.15 99.93 140.28 369.79
Benchmarks
Interest Coverage, Competitors
Applied Materials Inc. 19.84 13.99 16.51 16.24 4.68
Broadcom Inc. 5.02 -0.89 8.68 4.11 285.00
Cisco Systems Inc. 14.83 15.27 20.11 20.79 18.23 20.26
HP Inc. 11.60 14.78 15.47 20.06 16.28
Intel Corp. 32.50 18.65 43.17 83.30 52.68
NVIDIA Corp. 53.39 33.84 16.81 17.36 49.86 201.98
Qualcomm Inc. 1.67 7.11 24.01 63.38 1,756.60 357.26
Texas Instruments Inc. 78.95 62.63 47.84 42.21 29.99
Interest Coverage, Sector
Technology Hardware & Equipment 22.50 25.27 47.93 56.89 58.88
Interest Coverage, Industry
Technology 21.58 24.52 38.08 46.46 50.27

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).

2018 Calculations

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

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.