Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Apple Inc., long-term (investment) activity ratios
Based on: 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), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
The analysis of the six-year period reveals notable trends across key turnover ratios.
- Net Fixed Asset Turnover
- This ratio increased steadily from 6.96 in 2019 to a peak of 9.36 in 2022, indicating improving efficiency in utilizing fixed assets to generate revenue. However, it slightly declined in the following years to 8.77 in 2023 and further to 8.56 in 2024, suggesting a modest reduction in fixed asset productivity.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- The adjusted net fixed asset turnover showed a different trend. Starting at 6.96 in 2019, it declined significantly to 6.06 in 2020. Afterward, it experienced gradual recovery to 7.39 by 2021 and 7.51 in 2022 but slightly decreased again in subsequent years to 7.05 in 2023 and 6.99 in 2024. This pattern may reflect changes in lease accounting standards or asset structure impacting operational efficiency measures.
- Total Asset Turnover
- The total asset turnover ratio demonstrated continuous improvement over the observed period. Beginning from 0.77 in 2019, it rose consistently year over year, reaching 1.12 in 2022. Following this peak, there was a minor decrease to 1.09 in 2023 and a slight further reduction to 1.07 in 2024. The overall upward trend indicates enhanced effectiveness in using total assets to generate sales, despite minor recent fluctuations.
- Equity Turnover
- The equity turnover ratio evidenced the most pronounced growth trajectory among the ratios. Starting at 2.88 in 2019, it increased significantly to 4.20 in 2020, followed by a strong rise to 5.80 in 2021 and a peak at 7.78 in 2022. The ratio then declined to 6.17 in 2023 but rebounded moderately to 6.87 in 2024. These changes suggest increased sales generation relative to shareholders’ equity with some volatility post-2022.
In summary, the data indicates overall improvements in asset and equity utilization over the six-year period, with a peak around 2022 followed by slight moderation. The differences between the standard and lease-adjusted net fixed asset turnover highlight the impact of lease-related assets on asset efficiency measurements.
Net Fixed Asset Turnover
Apple Inc., net fixed asset turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Property, plant and equipment, net | 45,680) | 43,715) | 42,117) | 39,440) | 36,766) | 37,378) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 8.56 | 8.77 | 9.36 | 9.28 | 7.47 | 6.96 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 70.85 | 57.69 | 46.11 | 37.49 | 71.90 | — | |
| Cisco Systems Inc. | 25.74 | 27.34 | 25.82 | 21.31 | 20.10 | 18.61 | |
| Dell Technologies Inc. | 13.75 | 16.48 | 18.69 | 14.65 | 15.22 | — | |
| Super Micro Computer Inc. | 36.21 | 24.54 | 18.17 | 12.95 | 14.28 | 16.88 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Technology Hardware & Equipment | 10.15 | 10.60 | 11.15 | 10.63 | 9.26 | — | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | 3.46 | 3.78 | 4.44 | 4.74 | 4.57 | — | |
Based on: 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), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 391,035 ÷ 45,680 = 8.56
2 Click competitor name to see calculations.
- Net Sales
- Over the six-year period, net sales consistently increased from 260,174 million US dollars in 2019 to 391,035 million US dollars in 2024. There was a significant surge between 2020 and 2021, with sales rising approximately 33%, followed by continued growth through 2022. A slight decline occurred in 2023, but sales rebounded moderately in 2024, indicating overall positive revenue trends with minor fluctuations toward the later years.
- Property, Plant, and Equipment (Net)
- The net value of property, plant, and equipment showed a steady upward trend, climbing from 37,378 million US dollars in 2019 to 45,680 million US dollars in 2024. This reflects continued capital investment and asset base expansion over the timeframe. The yearly increases were relatively consistent, demonstrating stable asset growth supporting operational capabilities.
- Net Fixed Asset Turnover
- This ratio, which measures efficiency in utilizing fixed assets to generate sales, improved from 6.96 in 2019 to a peak of 9.36 in 2022. After this peak, it slightly declined to 8.77 in 2023 and further to 8.56 in 2024. Despite the recent downturn, the overall growth suggests progressively better asset utilization over the period, with the higher turnover in the middle years indicating optimal productivity before a slight easing in the most recent years.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Apple Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Property, plant and equipment, net | 45,680) | 43,715) | 42,117) | 39,440) | 36,766) | 37,378) | |
| Right-of-use assets, operating leases (included in Other non-current assets) | 10,234) | 10,661) | 10,417) | 10,087) | 8,570) | —) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 55,914) | 54,376) | 52,534) | 49,527) | 45,336) | 37,378) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 6.99 | 7.05 | 7.51 | 7.39 | 6.06 | 6.96 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Arista Networks Inc. | 46.44 | 37.21 | 29.52 | 20.50 | 21.16 | — | |
| Cisco Systems Inc. | 17.05 | 18.65 | 17.19 | 14.51 | 14.61 | 18.61 | |
| Dell Technologies Inc. | 12.39 | 14.75 | 16.10 | 11.02 | 11.76 | — | |
| Super Micro Computer Inc. | 33.35 | 23.02 | 16.78 | 12.07 | 12.96 | 16.88 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Technology Hardware & Equipment | 8.31 | 8.57 | 8.94 | 8.34 | 7.41 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | 3.05 | 3.32 | 3.84 | 4.02 | 3.86 | — | |
Based on: 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), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 391,035 ÷ 55,914 = 6.99
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited an overall ascending trajectory from 2019 to 2024, increasing from $260,174 million to $391,035 million. Notable growth occurred between 2020 and 2021, with sales rising sharply by approximately 33.2%. Following this surge, sales continued to rise but at a more moderate pace in subsequent years, peaking in 2022 at $394,328 million, then experiencing a slight decline in 2023 before recovering marginally in 2024.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment, including operating lease right-of-use assets, showed a steady increase over the six-year period. Starting at $37,378 million in 2019, this asset base grew consistently each year, reaching $55,914 million by 2024. This progression indicates ongoing investment in fixed assets, with annual increments reflecting a commitment to expanding or upgrading physical resources.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures sales generated per dollar invested in fixed assets, revealed fluctuating performance. It decreased from 6.96 in 2019 to 6.06 in 2020, suggesting a temporary reduction in efficiency, possibly due to the rapid asset base expansion. Subsequently, the ratio improved markedly in 2021 and 2022, achieving a peak of 7.51 in 2022. In the final two years, the ratio declined slightly but remained near 7.0, indicating a relatively stable and efficient utilization of fixed assets to generate sales.
- Summary of Trends
- The data reveals sustained growth in sales and asset investment, coupled with fluctuations in turnover efficiency. Initial declines in fixed asset turnover ratio correspond with asset expansion phases, whereas increases in the ratio suggest efforts to optimize asset utilization. Despite minor decreases in sales and asset turnover in later years, the overall financial indicators denote robust operational scaling and asset management.
Total Asset Turnover
Apple Inc., total asset turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Total assets | 364,980) | 352,583) | 352,755) | 351,002) | 323,888) | 338,516) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.07 | 1.09 | 1.12 | 1.04 | 0.85 | 0.77 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 0.50 | 0.59 | 0.65 | 0.51 | 0.49 | — | |
| Cisco Systems Inc. | 0.43 | 0.56 | 0.55 | 0.51 | 0.52 | 0.53 | |
| Dell Technologies Inc. | 1.08 | 1.14 | 1.09 | 0.76 | 0.78 | — | |
| Super Micro Computer Inc. | 1.53 | 1.94 | 1.62 | 1.59 | 1.74 | 2.08 | |
| Total Asset Turnover, Sector | |||||||
| Technology Hardware & Equipment | 0.93 | 1.00 | 1.01 | 0.89 | 0.77 | — | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | 0.58 | 0.61 | 0.65 | 0.62 | 0.58 | — | |
Based on: 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), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Total asset turnover = Net sales ÷ Total assets
= 391,035 ÷ 364,980 = 1.07
2 Click competitor name to see calculations.
- Net Sales
- Net sales exhibited a generally increasing trend from 2019 to 2024. Starting at $260.2 billion in 2019, net sales increased steadily each year, peaking at $394.3 billion in 2022. There was a slight decline in 2023, dropping to $383.3 billion, before experiencing a modest recovery to $391.0 billion in 2024. This reflects overall growth with some fluctuation in the most recent two years.
- Total Assets
- Total assets showed minor fluctuations over the period but remained relatively stable. Beginning at $338.5 billion in 2019, assets dipped to $323.9 billion in 2020, then increased steadily to $351.0 billion in 2021 and 352.8 billion in 2022. This level was largely maintained in 2023 at $352.6 billion, followed by a noticeable increase to $365.0 billion in 2024. The asset base grew moderately overall, with the largest increase occurring between 2023 and 2024.
- Total Asset Turnover
- The total asset turnover ratio, indicating efficiency in using assets to generate sales, showed consistent improvement from 2019 through 2022. Starting at 0.77 in 2019, the ratio increased to 0.85 in 2020, then improved substantially to 1.04 in 2021 and 1.12 in 2022. This upward trend suggests enhanced operational efficiency during this period. However, there was a slight decline thereafter, with the ratio decreasing to 1.09 in 2023 and further to 1.07 in 2024, indicating a minor reduction in asset utilization efficiency in the most recent years while still remaining well above the 2019 level.
Equity Turnover
Apple Inc., equity turnover calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Shareholders’ equity | 56,950) | 62,146) | 50,672) | 63,090) | 65,339) | 90,488) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 6.87 | 6.17 | 7.78 | 5.80 | 4.20 | 2.88 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Arista Networks Inc. | 0.70 | 0.81 | 0.90 | 0.74 | 0.70 | — | |
| Cisco Systems Inc. | 1.18 | 1.29 | 1.30 | 1.21 | 1.30 | 1.55 | |
| Dell Technologies Inc. | — | — | — | 38.01 | — | — | |
| Super Micro Computer Inc. | 2.77 | 3.61 | 3.64 | 3.25 | 3.13 | 3.72 | |
| Equity Turnover, Sector | |||||||
| Technology Hardware & Equipment | 4.81 | 4.94 | 5.86 | 4.61 | 3.97 | — | |
| Equity Turnover, Industry | |||||||
| Information Technology | 1.42 | 1.56 | 1.74 | 1.79 | 1.82 | — | |
Based on: 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), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).
1 2024 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity
= 391,035 ÷ 56,950 = 6.87
2 Click competitor name to see calculations.
- Net Sales
- The net sales exhibit a consistent increase from 2019 through 2022, rising from 260,174 million US dollars in 2019 to a peak of 394,328 million US dollars in 2022. In 2023, there is a noticeable decline to 383,285 million US dollars, followed by a moderate recovery to 391,035 million US dollars in 2024. Overall, the trend indicates strong growth until 2022, then a slight contraction and partial rebound in the subsequent years.
- Shareholders’ Equity
- The shareholders' equity demonstrates a declining trend over the entire period. It starts at 90,488 million US dollars in 2019, decreases sharply to 65,339 million in 2020, and continues to fall until reaching the lowest point of 50,672 million in 2022. Although there is some recovery in 2023 to 62,146 million, it decreases again to 56,950 million in 2024. This pattern suggests a fluctuation with an overall downward trajectory in equity value.
- Equity Turnover Ratio
- The equity turnover ratio shows a steady upward trend from 2.88 in 2019 to a peak of 7.78 in 2022. After this peak, the ratio decreases to 6.17 in 2023 but then rises again to 6.87 in 2024. The data indicates increased efficiency in using equity to generate sales, especially pronounced until 2022, with some volatility afterward but maintaining relatively high levels compared to the initial years.