Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Apple Inc., profitability ratios
Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 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).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apple Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apple Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apple Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apple Inc.’s ROE improved from 2018 to 2019 and from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Apple Inc.’s ROA improved from 2018 to 2019 and from 2019 to 2020. |
Gross Profit Margin
Apple Inc., gross profit margin calculation, comparison to benchmarks
| Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 104,956 | 98,392 | 101,839 | 88,186 | 84,263 | 93,626 | |
| Net sales | 274,515 | 260,174 | 265,595 | 229,234 | 215,639 | 233,715 | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 38.23% | 37.82% | 38.34% | 38.47% | 39.08% | 40.06% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 44.53% | 42.61% | 37.79% | 34.21% | 23.36% | — | |
| Analog Devices Inc. | 65.87% | 67.00% | 68.27% | 59.94% | 65.10% | 65.77% | |
| Applied Materials Inc. | 44.72% | 43.72% | 45.31% | 44.93% | 41.67% | 40.92% | |
| Broadcom Inc. | 56.58% | 55.24% | 51.48% | 48.25% | 44.86% | 52.07% | |
| Cisco Systems Inc. | 64.26% | 62.94% | 62.04% | 62.96% | 62.87% | 60.38% | |
| Intel Corp. | 56.01% | 58.56% | 61.73% | 62.25% | 60.94% | — | |
| Lam Research Corp. | 45.88% | 45.15% | 46.63% | 44.97% | 44.49% | 43.43% | |
| Micron Technology Inc. | 30.57% | 45.72% | 58.87% | 41.51% | 20.20% | 32.21% | |
| NVIDIA Corp. | 61.99% | 61.21% | 59.93% | 58.80% | 56.11% | 55.53% | |
| Qualcomm Inc. | 60.67% | 64.57% | 54.94% | 56.07% | 58.61% | 58.95% | |
| Texas Instruments Inc. | 64.10% | 63.71% | 65.11% | 64.26% | 61.63% | — | |
Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 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).
1 2020 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 104,956 ÷ 274,515 = 38.23%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apple Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level. |
Operating Profit Margin
Apple Inc., operating profit margin calculation, comparison to benchmarks
| Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 66,288 | 63,930 | 70,898 | 61,344 | 60,024 | 71,230 | |
| Net sales | 274,515 | 260,174 | 265,595 | 229,234 | 215,639 | 233,715 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 24.15% | 24.57% | 26.69% | 26.76% | 27.84% | 30.48% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 14.02% | 9.37% | 6.97% | 3.83% | -8.71% | — | |
| Analog Devices Inc. | 26.74% | 28.55% | 30.35% | 20.66% | 30.05% | 24.19% | |
| Applied Materials Inc. | 25.37% | 22.93% | 27.80% | 26.61% | 19.88% | 17.53% | |
| Broadcom Inc. | 16.80% | 15.24% | 24.63% | 13.51% | -3.09% | 23.92% | |
| Cisco Systems Inc. | 27.63% | 27.39% | 24.95% | 24.94% | 25.71% | 21.91% | |
| Intel Corp. | 30.41% | 30.62% | 32.91% | 28.58% | 21.68% | — | |
| Lam Research Corp. | 26.62% | 25.53% | 29.01% | 23.74% | 18.25% | 14.98% | |
| Micron Technology Inc. | 14.01% | 31.51% | 49.34% | 28.88% | 1.35% | 18.52% | |
| NVIDIA Corp. | 26.07% | 32.47% | 33.05% | 27.99% | 14.91% | 16.21% | |
| Qualcomm Inc. | 26.58% | 31.59% | 3.26% | 11.73% | 27.57% | 22.85% | |
| Texas Instruments Inc. | 40.76% | 39.79% | 42.53% | 40.66% | 35.89% | — | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 26.35% | 28.06% | 25.74% | 24.32% | — | |
| Operating Profit Margin, Industry | |||||||
| Technology | — | 25.96% | 27.06% | 25.45% | 24.51% | — | |
Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 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).
1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 66,288 ÷ 274,515 = 24.15%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apple Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
Apple Inc., net profit margin calculation, comparison to benchmarks
| Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 57,411 | 55,256 | 59,531 | 48,351 | 45,687 | 53,394 | |
| Net sales | 274,515 | 260,174 | 265,595 | 229,234 | 215,639 | 233,715 | |
| Profitability Ratio | |||||||
| Net profit margin1 | 20.91% | 21.24% | 22.41% | 21.09% | 21.19% | 22.85% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 25.50% | 5.07% | 5.20% | 0.81% | -11.63% | — | |
| Analog Devices Inc. | 21.79% | 22.75% | 24.12% | 14.24% | 25.18% | 20.29% | |
| Applied Materials Inc. | 21.04% | 18.52% | 19.20% | 23.62% | 15.90% | 14.26% | |
| Broadcom Inc. | 12.39% | 12.05% | 58.80% | 9.59% | -13.13% | 19.99% | |
| Cisco Systems Inc. | 22.75% | 22.39% | 0.22% | 20.02% | 21.81% | 18.27% | |
| Intel Corp. | 26.84% | 29.25% | 29.72% | 15.30% | 17.37% | — | |
| Lam Research Corp. | 22.42% | 22.70% | 21.49% | 21.19% | 15.53% | 12.47% | |
| Micron Technology Inc. | 12.54% | 26.97% | 46.51% | 25.04% | -2.23% | 17.90% | |
| NVIDIA Corp. | 25.61% | 35.34% | 31.37% | 24.11% | 12.26% | 13.47% | |
| Qualcomm Inc. | 22.09% | 18.07% | -21.40% | 11.06% | 24.22% | 20.85% | |
| Texas Instruments Inc. | 38.69% | 34.88% | 35.35% | 24.61% | 26.89% | — | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 22.63% | 22.49% | 19.35% | 18.65% | — | |
| Net Profit Margin, Industry | |||||||
| Technology | — | 22.90% | 20.81% | 18.50% | 19.30% | — | |
Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 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).
1 2020 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 57,411 ÷ 274,515 = 20.91%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apple Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Equity (ROE)
Apple Inc., ROE calculation, comparison to benchmarks
| Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 57,411 | 55,256 | 59,531 | 48,351 | 45,687 | 53,394 | |
| Shareholders’ equity | 65,339 | 90,488 | 107,147 | 134,047 | 128,249 | 119,355 | |
| Profitability Ratio | |||||||
| ROE1 | 87.87% | 61.06% | 55.56% | 36.07% | 35.62% | 44.74% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 42.66% | 12.06% | 26.62% | 7.04% | -119.47% | — | |
| Analog Devices Inc. | 10.17% | 11.64% | 13.61% | 7.16% | 16.68% | 13.74% | |
| Applied Materials Inc. | 34.21% | 32.94% | 48.44% | 36.73% | 23.85% | 18.09% | |
| Broadcom Inc. | 12.40% | 10.92% | 45.99% | 8.34% | -9.20% | 28.94% | |
| Cisco Systems Inc. | 29.57% | 34.62% | 0.25% | 14.53% | 16.89% | 15.04% | |
| Intel Corp. | 25.79% | 27.16% | 28.24% | 13.91% | 15.58% | — | |
| Lam Research Corp. | 43.53% | 46.89% | 36.62% | 24.90% | 15.51% | 12.85% | |
| Micron Technology Inc. | 6.89% | 17.59% | 43.77% | 27.33% | -2.28% | 23.57% | |
| NVIDIA Corp. | 22.91% | 44.33% | 40.78% | 28.91% | 13.74% | 14.27% | |
| Qualcomm Inc. | 85.54% | 89.35% | -524.14% | 8.02% | 17.95% | 16.78% | |
| Texas Instruments Inc. | 60.90% | 56.33% | 62.04% | 35.62% | 34.33% | — | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | — | 37.42% | 36.22% | 23.06% | 21.90% | — | |
| ROE, Industry | |||||||
| Technology | — | 29.77% | 26.95% | 20.11% | 20.72% | — | |
Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 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).
1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 57,411 ÷ 65,339 = 87.87%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apple Inc.’s ROE improved from 2018 to 2019 and from 2019 to 2020. |
Return on Assets (ROA)
Apple Inc., ROA calculation, comparison to benchmarks
| Sep 26, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Sep 24, 2016 | Sep 26, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 57,411 | 55,256 | 59,531 | 48,351 | 45,687 | 53,394 | |
| Total assets | 323,888 | 338,516 | 365,725 | 375,319 | 321,686 | 290,479 | |
| Profitability Ratio | |||||||
| ROA1 | 17.73% | 16.32% | 16.28% | 12.88% | 14.20% | 18.38% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 27.78% | 5.66% | 7.40% | 1.21% | -14.97% | — | |
| Analog Devices Inc. | 5.69% | 6.37% | 7.31% | 3.44% | 10.81% | 9.87% | |
| Applied Materials Inc. | 16.19% | 14.22% | 18.64% | 17.68% | 11.80% | 9.00% | |
| Broadcom Inc. | 3.90% | 4.04% | 24.46% | 3.11% | -3.48% | 12.88% | |
| Cisco Systems Inc. | 11.82% | 11.88% | 0.10% | 7.40% | 8.83% | 7.91% | |
| Intel Corp. | 13.65% | 15.42% | 16.45% | 7.79% | 9.10% | — | |
| Lam Research Corp. | 15.47% | 18.26% | 19.08% | 14.00% | 7.45% | 7.00% | |
| Micron Technology Inc. | 5.01% | 12.91% | 32.59% | 14.40% | -1.00% | 12.01% | |
| NVIDIA Corp. | 16.15% | 31.15% | 27.11% | 16.93% | 8.33% | 8.76% | |
| Qualcomm Inc. | 14.60% | 13.31% | -14.88% | 3.77% | 10.90% | 10.38% | |
| Texas Instruments Inc. | 28.91% | 27.84% | 32.56% | 20.87% | 21.88% | — | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | — | 14.42% | 14.57% | 10.15% | 10.37% | — | |
| ROA, Industry | |||||||
| Technology | — | 12.84% | 11.88% | 9.15% | 10.14% | — | |
Based on: 10-K (filing date: 2020-10-30), 10-K (filing date: 2019-10-31), 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).
1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 57,411 ÷ 323,888 = 17.73%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Apple Inc.’s ROA improved from 2018 to 2019 and from 2019 to 2020. |