Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Apple Inc., profitability ratios

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Return on Sales
Gross profit margin 41.78% 38.23% 37.82% 38.34% 38.47% 39.08%
Operating profit margin 29.78% 24.15% 24.57% 26.69% 26.76% 27.84%
Net profit margin 25.88% 20.91% 21.24% 22.41% 21.09% 21.19%
Return on Investment
Return on equity (ROE) 150.07% 87.87% 61.06% 55.56% 36.07% 35.62%
Return on assets (ROA) 26.97% 17.73% 16.32% 16.28% 12.88% 14.20%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

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. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Apple Inc. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Apple Inc. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Apple Inc. ROE improved from 2019 to 2020 and from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Apple Inc. ROA improved from 2019 to 2020 and from 2020 to 2021.

Gross Profit Margin

Apple Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Gross margin 152,836  104,956  98,392  101,839  88,186  84,263 
Net sales 365,817  274,515  260,174  265,595  229,234  215,639 
Profitability Ratio
Gross profit margin1 41.78% 38.23% 37.82% 38.34% 38.47% 39.08%
Benchmarks
Gross Profit Margin, Competitors2
Cisco Systems Inc. 64.02% 64.26% 62.94% 62.04% 62.96% 62.87%
Enphase Energy Inc. 40.12% 44.68% 35.44% 29.87% 19.58%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 152,836 ÷ 365,817 = 41.78%

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. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

Apple Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Operating income 108,949  66,288  63,930  70,898  61,344  60,024 
Net sales 365,817  274,515  260,174  265,595  229,234  215,639 
Profitability Ratio
Operating profit margin1 29.78% 24.15% 24.57% 26.69% 26.76% 27.84%
Benchmarks
Operating Profit Margin, Competitors2
Cisco Systems Inc. 25.76% 27.63% 27.39% 24.95% 24.94% 25.71%
Enphase Energy Inc. 15.62% 24.07% 16.45% 0.50% -13.76%
Operating Profit Margin, Sector
Technology Hardware & Equipment 29.25% 24.68% 25.02% 26.40% 26.40%
Operating Profit Margin, Industry
Information Technology 29.82% 26.10% 26.79% 27.57% 25.08%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 108,949 ÷ 365,817 = 29.78%

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. operating profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Net Profit Margin

Apple Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Net income 94,680  57,411  55,256  59,531  48,351  45,687 
Net sales 365,817  274,515  260,174  265,595  229,234  215,639 
Profitability Ratio
Net profit margin1 25.88% 20.91% 21.24% 22.41% 21.09% 21.19%
Benchmarks
Net Profit Margin, Competitors2
Cisco Systems Inc. 21.26% 22.75% 22.39% 0.22% 20.02% 21.81%
Enphase Energy Inc. 10.52% 17.30% 25.81% -3.68% -15.79%
Net Profit Margin, Sector
Technology Hardware & Equipment 25.28% 21.18% 21.44% 18.92% 20.87%
Net Profit Margin, Industry
Information Technology 26.34% 22.29% 23.19% 19.78% 18.69%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 94,680 ÷ 365,817 = 25.88%

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. net profit margin ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Return on Equity (ROE)

Apple Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Net income 94,680  57,411  55,256  59,531  48,351  45,687 
Shareholders’ equity 63,090  65,339  90,488  107,147  134,047  128,249 
Profitability Ratio
ROE1 150.07% 87.87% 61.06% 55.56% 36.07% 35.62%
Benchmarks
ROE, Competitors2
Cisco Systems Inc. 25.66% 29.57% 34.62% 0.25% 14.53% 16.89%
Enphase Energy Inc. 33.81% 27.69% 59.20% -149.52%
ROE, Sector
Technology Hardware & Equipment 100.59% 66.28% 53.92% 39.66% 28.93%
ROE, Industry
Information Technology 42.37% 35.05% 36.73% 30.80% 23.41%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 94,680 ÷ 63,090 = 150.07%

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. ROE improved from 2019 to 2020 and from 2020 to 2021.

Return on Assets (ROA)

Apple Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Sep 25, 2021 Sep 26, 2020 Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Sep 24, 2016
Selected Financial Data (US$ in millions)
Net income 94,680  57,411  55,256  59,531  48,351  45,687 
Total assets 351,002  323,888  338,516  365,725  375,319  321,686 
Profitability Ratio
ROA1 26.97% 17.73% 16.32% 16.28% 12.88% 14.20%
Benchmarks
ROA, Competitors2
Cisco Systems Inc. 10.86% 11.82% 11.88% 0.10% 7.40% 8.83%
Enphase Energy Inc. 7.00% 11.17% 22.59% -3.42% -26.72%
ROA, Sector
Technology Hardware & Equipment 23.40% 16.37% 15.34% 12.56% 11.46%
ROA, Industry
Information Technology 15.42% 12.05% 12.91% 11.23% 9.16%

Based on: 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-09-24).

1 2021 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 94,680 ÷ 351,002 = 26.97%

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. ROA improved from 2019 to 2020 and from 2020 to 2021.