Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Apple Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-K (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26).
The solvency profile exhibits a distinct two-phase trajectory characterized by an initial increase in leverage peaking in the third quarter of 2022, followed by a sustained and significant reduction in debt-related ratios through the first quarter of 2026. This transition indicates a strategic shift toward a more conservative capital structure and a reduced reliance on borrowed funds.
- Debt to Equity
- A period of expansion is observed from December 2020, where the ratio rose from 1.69 to a peak of 2.37 in September 2022. Subsequently, a consistent downward trend emerged, with the ratio falling to 0.80 by March 2026. This represents a substantial deleveraging effort, shifting the balance from a debt-heavy equity position to one where equity exceeds total debt.
- Debt to Capital
- The ratio remained relatively stable between 0.63 and 0.70 for the first two years of the period. Following the peak in September 2022, a gradual decline began, culminating in a low of 0.44 by March 2026. This trend confirms a reduction in the proportion of debt relative to the total capital base.
- Debt to Assets
- This metric showed moderate fluctuations, peaking at 0.37 in June 2021 before stabilizing. From late 2023 onward, a steady decline is evident, with the ratio reaching 0.23 by March 2026. This suggests that a smaller percentage of total assets is being financed through debt over time.
- Financial Leverage
- Financial leverage exhibited the highest volatility, climbing from 5.35 in December 2020 to a maximum of 6.96 in September 2022. A sharp correction followed, with the ratio dropping significantly to 3.48 by March 2026. This contraction suggests a reduced use of debt to amplify returns on equity and a lower overall risk profile.
Overall, the long-term trend across all solvency metrics points to a systematic reduction in financial risk. The convergence of these ratios toward lower values by early 2026 reflects an improved solvency position and increased financial flexibility.
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Debt Ratios
Debt to Equity
Apple Inc., debt to equity calculation (quarterly data)
| Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Commercial paper | 1,997) | 1,997) | 7,979) | 9,923) | 5,982) | 1,995) | 9,967) | 2,994) | 1,997) | 1,998) | 5,985) | 3,993) | 1,996) | 1,743) | 9,982) | 10,982) | 6,999) | 5,000) | 6,000) | 8,000) | 5,000) | 5,000) | |||||||
| Current portion of term debt | 8,310) | 11,827) | 12,350) | 9,345) | 13,638) | 10,848) | 10,912) | 12,114) | 10,762) | 10,954) | 9,822) | 7,216) | 10,578) | 9,740) | 11,128) | 14,009) | 9,659) | 11,169) | 9,613) | 8,039) | 8,003) | 7,762) | |||||||
| Non-current portion of term debt | 74,404) | 76,685) | 78,328) | 82,430) | 78,566) | 83,956) | 85,750) | 86,196) | 91,831) | 95,088) | 95,281) | 98,071) | 97,041) | 99,627) | 98,959) | 94,700) | 103,323) | 106,629) | 109,106) | 105,752) | 108,642) | 99,281) | |||||||
| Total debt | 84,711) | 90,509) | 98,657) | 101,698) | 98,186) | 96,799) | 106,629) | 101,304) | 104,590) | 108,040) | 111,088) | 109,280) | 109,615) | 111,110) | 120,069) | 119,691) | 119,981) | 122,798) | 124,719) | 121,791) | 121,645) | 112,043) | |||||||
| Shareholders’ equity | 106,491) | 88,190) | 73,733) | 65,830) | 66,796) | 66,758) | 56,950) | 66,708) | 74,194) | 74,100) | 62,146) | 60,274) | 62,158) | 56,727) | 50,672) | 58,107) | 67,399) | 71,932) | 63,090) | 64,280) | 69,178) | 66,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 0.80 | 1.03 | 1.34 | 1.54 | 1.47 | 1.45 | 1.87 | 1.52 | 1.41 | 1.46 | 1.79 | 1.81 | 1.76 | 1.96 | 2.37 | 2.06 | 1.78 | 1.71 | 1.98 | 1.89 | 1.76 | 1.69 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.63 | 0.60 | 0.60 | 0.64 | 0.68 | 0.71 | 0.68 | 0.70 | 0.25 | 0.17 | 0.19 | 0.20 | 0.21 | 0.22 | 0.24 | 0.23 | 0.29 | 0.22 | 0.28 | 0.29 | 0.37 | 0.38 | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 5.36 | 9.04 | 13.39 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 3.88 | 4.15 | 2.27 | 2.93 | 2.95 | 2.88 | 2.61 | 2.13 | 2.21 | 2.15 | 2.07 | 1.51 | 1.50 | 1.52 | 1.00 | 0.97 | 0.60 | 0.61 | 0.60 | 0.54 | 0.60 | 0.62 | |||||||
| Super Micro Computer Inc. | 0.70 | 0.73 | 0.75 | 0.39 | 0.31 | 0.38 | 0.40 | 0.37 | 0.12 | 0.07 | 0.15 | 0.11 | 0.09 | 0.15 | 0.42 | 0.43 | 0.27 | 0.25 | 0.09 | 0.08 | 0.04 | 0.03 | |||||||
Based on: 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-K (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26).
1 Q2 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 84,711 ÷ 106,491 = 0.80
2 Click competitor name to see calculations.
The solvency profile exhibits a significant transition toward a more conservative capital structure over the analyzed period. After a phase of increasing leverage that peaked in late 2022, there is a consistent downward trajectory in the reliance on debt relative to equity, resulting in a strengthened balance sheet position.
- Total Debt Trends
- Total debt levels remained elevated between December 2020 and December 2021, reaching a peak of 124,719 million US dollars in September 2021. Following this peak, a gradual reduction in total liabilities was observed. This downward trend accelerated in the latter part of the period, with debt falling to 90,509 million US dollars by September 2025 and reaching a period low of 84,711 million US dollars by March 2026.
- Shareholders' Equity Dynamics
- Equity experienced a period of contraction and volatility between 2020 and 2022, hitting a minimum of 50,672 million US dollars in September 2022. From late 2023 onward, a sustained expansion in shareholders' equity occurred. This growth trend intensified throughout 2025 and early 2026, with equity increasing to 106,491 million US dollars by March 2026, more than doubling from its 2022 trough.
- Debt to Equity Ratio Evolution
- The debt to equity ratio highlights a clear cycle of leverage expansion followed by deleveraging. The ratio rose from 1.69 in December 2020 to a peak of 2.37 in September 2022, indicating a temporary increase in financial risk. A subsequent reversal occurred, with the ratio steadily declining throughout 2023 and 2024. By March 2026, the ratio reached 0.80, signaling a fundamental shift where equity now exceeds total debt, significantly lowering the company's solvency risk.
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Debt to Capital
Apple Inc., debt to capital calculation (quarterly data)
| Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Commercial paper | 1,997) | 1,997) | 7,979) | 9,923) | 5,982) | 1,995) | 9,967) | 2,994) | 1,997) | 1,998) | 5,985) | 3,993) | 1,996) | 1,743) | 9,982) | 10,982) | 6,999) | 5,000) | 6,000) | 8,000) | 5,000) | 5,000) | |||||||
| Current portion of term debt | 8,310) | 11,827) | 12,350) | 9,345) | 13,638) | 10,848) | 10,912) | 12,114) | 10,762) | 10,954) | 9,822) | 7,216) | 10,578) | 9,740) | 11,128) | 14,009) | 9,659) | 11,169) | 9,613) | 8,039) | 8,003) | 7,762) | |||||||
| Non-current portion of term debt | 74,404) | 76,685) | 78,328) | 82,430) | 78,566) | 83,956) | 85,750) | 86,196) | 91,831) | 95,088) | 95,281) | 98,071) | 97,041) | 99,627) | 98,959) | 94,700) | 103,323) | 106,629) | 109,106) | 105,752) | 108,642) | 99,281) | |||||||
| Total debt | 84,711) | 90,509) | 98,657) | 101,698) | 98,186) | 96,799) | 106,629) | 101,304) | 104,590) | 108,040) | 111,088) | 109,280) | 109,615) | 111,110) | 120,069) | 119,691) | 119,981) | 122,798) | 124,719) | 121,791) | 121,645) | 112,043) | |||||||
| Shareholders’ equity | 106,491) | 88,190) | 73,733) | 65,830) | 66,796) | 66,758) | 56,950) | 66,708) | 74,194) | 74,100) | 62,146) | 60,274) | 62,158) | 56,727) | 50,672) | 58,107) | 67,399) | 71,932) | 63,090) | 64,280) | 69,178) | 66,224) | |||||||
| Total capital | 191,202) | 178,699) | 172,390) | 167,528) | 164,982) | 163,557) | 163,579) | 168,012) | 178,784) | 182,140) | 173,234) | 169,554) | 171,773) | 167,837) | 170,741) | 177,798) | 187,380) | 194,730) | 187,809) | 186,071) | 190,823) | 178,267) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.44 | 0.51 | 0.57 | 0.61 | 0.60 | 0.59 | 0.65 | 0.60 | 0.59 | 0.59 | 0.64 | 0.64 | 0.64 | 0.66 | 0.70 | 0.67 | 0.64 | 0.63 | 0.66 | 0.65 | 0.64 | 0.63 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.39 | 0.37 | 0.37 | 0.39 | 0.41 | 0.41 | 0.41 | 0.41 | 0.20 | 0.14 | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.23 | 0.18 | 0.22 | 0.22 | 0.27 | 0.28 | |||||||
| Dell Technologies Inc. | 1.11 | 1.12 | 1.06 | 1.10 | 1.13 | 1.12 | 1.10 | 1.11 | 1.11 | 1.12 | 1.12 | 1.15 | 1.12 | 1.10 | 1.07 | 0.84 | 0.90 | 0.93 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 0.80 | 0.81 | 0.69 | 0.75 | 0.75 | 0.74 | 0.72 | 0.68 | 0.69 | 0.68 | 0.67 | 0.60 | 0.60 | 0.60 | 0.50 | 0.49 | 0.37 | 0.38 | 0.37 | 0.35 | 0.37 | 0.38 | |||||||
| Super Micro Computer Inc. | 0.41 | 0.42 | 0.43 | 0.28 | 0.23 | 0.28 | 0.29 | 0.27 | 0.11 | 0.06 | 0.13 | 0.10 | 0.09 | 0.13 | 0.30 | 0.30 | 0.21 | 0.20 | 0.08 | 0.07 | 0.04 | 0.03 | |||||||
Based on: 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-K (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26).
1 Q2 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 84,711 ÷ 191,202 = 0.44
2 Click competitor name to see calculations.
The solvency profile over the observed period reflects a transition from a peak leverage position toward a significantly more conservative capital structure. While debt levels remained relatively stable and elevated between late 2020 and 2022, a sustained deleveraging trend emerged thereafter, culminating in a substantial reduction of the debt-to-capital ratio by the first quarter of 2026.
- Total Debt Trends
- Total debt increased from 112,043 million USD in December 2020 to a peak of 124,719 million USD in September 2021. Following this peak, a gradual downward trajectory was established. The most pronounced decline occurred between late 2024 and early 2026, with debt levels falling to 84,711 million USD by March 2026, representing a significant reduction in absolute liabilities.
- Total Capital Volatility
- Total capital exhibited fluctuations, peaking at 194,730 million USD in December 2021 before experiencing a period of contraction. Capital levels reached a trough of 163,557 million USD in December 2024. However, a recovery trend is evident in 2025 and early 2026, with total capital rising to 191,202 million USD by March 2026.
- Debt to Capital Ratio Analysis
- The debt to capital ratio reached its maximum of 0.70 in September 2022, indicating the highest point of financial leverage during the period. A subsequent stabilization period occurred between 2023 and 2024, with the ratio fluctuating between 0.59 and 0.65. A sharp acceleration in deleveraging is observed from September 2025 (0.57) through March 2026, where the ratio dropped to 0.44, marking the lowest leverage level in the analyzed timeframe.
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Debt to Assets
Apple Inc., debt to assets calculation (quarterly data)
| Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Commercial paper | 1,997) | 1,997) | 7,979) | 9,923) | 5,982) | 1,995) | 9,967) | 2,994) | 1,997) | 1,998) | 5,985) | 3,993) | 1,996) | 1,743) | 9,982) | 10,982) | 6,999) | 5,000) | 6,000) | 8,000) | 5,000) | 5,000) | |||||||
| Current portion of term debt | 8,310) | 11,827) | 12,350) | 9,345) | 13,638) | 10,848) | 10,912) | 12,114) | 10,762) | 10,954) | 9,822) | 7,216) | 10,578) | 9,740) | 11,128) | 14,009) | 9,659) | 11,169) | 9,613) | 8,039) | 8,003) | 7,762) | |||||||
| Non-current portion of term debt | 74,404) | 76,685) | 78,328) | 82,430) | 78,566) | 83,956) | 85,750) | 86,196) | 91,831) | 95,088) | 95,281) | 98,071) | 97,041) | 99,627) | 98,959) | 94,700) | 103,323) | 106,629) | 109,106) | 105,752) | 108,642) | 99,281) | |||||||
| Total debt | 84,711) | 90,509) | 98,657) | 101,698) | 98,186) | 96,799) | 106,629) | 101,304) | 104,590) | 108,040) | 111,088) | 109,280) | 109,615) | 111,110) | 120,069) | 119,691) | 119,981) | 122,798) | 124,719) | 121,791) | 121,645) | 112,043) | |||||||
| Total assets | 371,082) | 379,297) | 359,241) | 331,495) | 331,233) | 344,085) | 364,980) | 331,612) | 337,411) | 353,514) | 352,583) | 335,038) | 332,160) | 346,747) | 352,755) | 336,309) | 350,662) | 381,191) | 351,002) | 329,840) | 337,158) | 354,054) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.23 | 0.24 | 0.27 | 0.31 | 0.30 | 0.28 | 0.29 | 0.31 | 0.31 | 0.31 | 0.32 | 0.33 | 0.33 | 0.32 | 0.34 | 0.36 | 0.34 | 0.32 | 0.36 | 0.37 | 0.36 | 0.32 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Arista Networks Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — | |||||||
| Cisco Systems Inc. | 0.24 | 0.23 | 0.23 | 0.24 | 0.26 | 0.26 | 0.25 | 0.26 | 0.11 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.12 | 0.10 | 0.12 | 0.12 | 0.15 | 0.15 | |||||||
| Dell Technologies Inc. | 0.32 | 0.33 | 0.31 | 0.31 | 0.30 | 0.32 | 0.32 | 0.32 | 0.32 | 0.34 | 0.33 | 0.32 | 0.30 | 0.31 | 0.29 | 0.35 | 0.36 | 0.38 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 0.68 | 0.70 | 0.61 | 0.65 | 0.65 | 0.65 | 0.64 | 0.60 | 0.61 | 0.62 | 0.61 | 0.53 | 0.53 | 0.53 | 0.45 | 0.45 | 0.34 | 0.34 | 0.33 | 0.31 | 0.33 | 0.33 | |||||||
| Super Micro Computer Inc. | 0.17 | 0.33 | 0.34 | 0.23 | 0.20 | 0.21 | 0.22 | 0.21 | 0.07 | 0.04 | 0.08 | 0.06 | 0.06 | 0.08 | 0.19 | 0.18 | 0.12 | 0.11 | 0.04 | 0.04 | 0.02 | 0.02 | |||||||
Based on: 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-K (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26).
1 Q2 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 84,711 ÷ 371,082 = 0.23
2 Click competitor name to see calculations.
The financial data indicates a significant long-term improvement in the solvency position, characterized by a consistent reduction in the proportion of assets financed through debt. Over the analyzed period, the debt to assets ratio transitioned from a peak of 0.37 in June 2021 to a low of 0.23 by March 2026.
- Total Debt Trajectory
- Total debt experienced an initial upward trend, rising from 112,043 million USD in December 2020 to a peak of 124,719 million USD in September 2021. Following this peak, a gradual deleveraging process occurred. Debt levels remained relatively stable between 108,000 million USD and 120,000 million USD through 2022 and 2023, before entering a period of accelerated decline starting in 2024. By March 2026, total debt decreased to 84,711 million USD, representing a substantial reduction from the 2021 peak.
- Total Asset Stability
- Total assets exhibited periodic fluctuations but remained within a broad range of approximately 329,000 million USD to 381,000 million USD. The asset base peaked in December 2021 at 381,191 million USD and showed resilience, ending the period at 371,082 million USD in March 2026. The lack of a drastic decline in assets, paired with the reduction in debt, contributed to the overall improvement in the solvency ratio.
- Debt to Assets Ratio Analysis
- The solvency ratio moved through three distinct phases. The first phase, from December 2020 to June 2021, saw a rise in leverage as the ratio climbed from 0.32 to 0.37. The second phase, spanning from December 2021 to December 2023, was characterized by stabilization, with the ratio oscillating between 0.31 and 0.34. The final phase, beginning in March 2024, shows a sustained downward trend, with the ratio dropping from 0.31 to 0.23 by the end of the period. This decline suggests a strategic shift toward reducing financial leverage and increasing the equity-to-asset proportion.
In summary, the observed patterns reflect a transition from a period of increasing leverage to a period of aggressive debt reduction. The consistent decline in the debt to assets ratio since early 2024 indicates a strengthened balance sheet and a reduced reliance on borrowed capital to fund the asset base.
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Financial Leverage
Apple Inc., financial leverage calculation (quarterly data)
| Mar 28, 2026 | Dec 27, 2025 | Sep 27, 2025 | Jun 28, 2025 | Mar 29, 2025 | Dec 28, 2024 | Sep 28, 2024 | Jun 29, 2024 | Mar 30, 2024 | Dec 30, 2023 | Sep 30, 2023 | Jul 1, 2023 | Apr 1, 2023 | Dec 31, 2022 | Sep 24, 2022 | Jun 25, 2022 | Mar 26, 2022 | Dec 25, 2021 | Sep 25, 2021 | Jun 26, 2021 | Mar 27, 2021 | Dec 26, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 371,082) | 379,297) | 359,241) | 331,495) | 331,233) | 344,085) | 364,980) | 331,612) | 337,411) | 353,514) | 352,583) | 335,038) | 332,160) | 346,747) | 352,755) | 336,309) | 350,662) | 381,191) | 351,002) | 329,840) | 337,158) | 354,054) | |||||||
| Shareholders’ equity | 106,491) | 88,190) | 73,733) | 65,830) | 66,796) | 66,758) | 56,950) | 66,708) | 74,194) | 74,100) | 62,146) | 60,274) | 62,158) | 56,727) | 50,672) | 58,107) | 67,399) | 71,932) | 63,090) | 64,280) | 69,178) | 66,224) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 3.48 | 4.30 | 4.87 | 5.04 | 4.96 | 5.15 | 6.41 | 4.97 | 4.55 | 4.77 | 5.67 | 5.56 | 5.34 | 6.11 | 6.96 | 5.79 | 5.20 | 5.30 | 5.56 | 5.13 | 4.87 | 5.35 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Arista Networks Inc. | — | 1.61 | 1.57 | 1.52 | 1.52 | 1.43 | 1.41 | 1.39 | 1.38 | 1.34 | 1.38 | 1.39 | 1.40 | 1.42 | 1.39 | 1.41 | 1.45 | 1.47 | — | — | — | — | |||||||
| Cisco Systems Inc. | 2.59 | 2.58 | 2.61 | 2.61 | 2.67 | 2.72 | 2.74 | 2.69 | 2.19 | 2.18 | 2.30 | 2.31 | 2.31 | 2.31 | 2.36 | 2.30 | 2.39 | 2.25 | 2.36 | 2.34 | 2.44 | 2.49 | |||||||
| Dell Technologies Inc. | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 15.15 | 25.43 | 34.92 | — | — | — | — | |||||||
| Lumentum Holdings Inc. | 5.68 | 5.91 | 3.72 | 4.52 | 4.55 | 4.43 | 4.11 | 3.57 | 3.64 | 3.47 | 3.42 | 2.83 | 2.86 | 2.87 | 2.22 | 2.16 | 1.79 | 1.79 | 1.80 | 1.73 | 1.80 | 1.87 | |||||||
| Super Micro Computer Inc. | 4.00 | 2.21 | 2.22 | 1.68 | 1.56 | 1.85 | 1.81 | 1.74 | 1.76 | 1.89 | 1.86 | 1.81 | 1.69 | 2.03 | 2.25 | 2.41 | 2.26 | 2.14 | 2.05 | 1.90 | 1.78 | 1.69 | |||||||
Based on: 10-Q (reporting date: 2026-03-28), 10-Q (reporting date: 2025-12-27), 10-K (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26).
1 Q2 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 371,082 ÷ 106,491 = 3.48
2 Click competitor name to see calculations.
The financial leverage of the organization exhibits a cyclical pattern characterized by an initial period of stability, followed by a phase of significant volatility, and concluding with a pronounced deleveraging trend.
- Leverage Volatility and Peak Analysis
- Between December 2020 and December 2021, the financial leverage ratio remained relatively stable, fluctuating within a range of 4.87 to 5.56. A notable upward trend emerged throughout 2022, culminating in a peak ratio of 6.96 in September 2022. This escalation was primarily driven by a contraction in shareholders' equity, which reached a period low of 50,672 million US dollars during that quarter, while total assets remained comparatively stable.
- Intermediate Stabilization and Recurrence
- Following the 2022 peak, a corrective trend led the leverage ratio down to 4.77 by December 2023. However, this stabilization was temporary, as a secondary spike to 6.41 occurred in September 2024. This recurrence suggests a transient shift in the capital structure, likely resulting from a decrease in equity relative to the asset base.
- Long-term Deleveraging Trend
- A consistent and substantial decline in financial leverage is observed from December 2024 through March 2026. During this interval, the ratio decreased from 5.15 to a period low of 3.48. This downward trajectory is attributed to a significant expansion in shareholders' equity, which grew from 66,758 million US dollars in December 2024 to 106,491 million US dollars by March 2026, far outpacing the growth rate of total assets.
The overall trajectory indicates a strategic shift toward a more conservative solvency position. The reduction of the financial leverage ratio from its peak of 6.96 to 3.48 reflects a strengthened equity base and a reduced reliance on leveraged financing to support the asset portfolio.
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