Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Apple Inc. (NASDAQ:AAPL)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Apple Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016 Sep 26, 2015
Return on Sales
Gross profit margin 38.23% 37.82% 38.34% 38.47% 39.08% 40.06%
Operating profit margin 24.15% 24.57% 26.69% 26.76% 27.84% 30.48%
Net profit margin 20.91% 21.24% 22.41% 21.09% 21.19% 22.85%
Return on Investment
Return on equity (ROE) 87.87% 61.06% 55.56% 36.07% 35.62% 44.74%
Return on assets (ROA) 17.73% 16.32% 16.28% 12.88% 14.20% 18.38%

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.