Apple Inc. (NASDAQ:AAPL)
Performance Charts
Comprehensive visual analysis of Apple Inc.'s financial performance
Profit Margins Analysis
Net Profit Margin Analysis for Apple Inc.
Apple Inc. recorded a net profit margin of 26.92% in Sep 2025, which is classified as Excellent .
This exceptional margin indicates highly efficient operations and strong pricing power, making Apple Inc. a potentially attractive investment for profit-focused investors.
Company Performance
Stacked chart showing Revenue, Gross Profit, and Net Profit over time.
Understanding Apple Inc.'s Company Performance
Revenue
Total income from core business activities. Growing revenue indicates business expansion and market success.
Gross Profit
Revenue minus direct costs. Shows operational efficiency and pricing power after production expenses.
Net Profit
Final profit after all expenses. The bottom line that shows true profitability and value creation.
What Investors Should Look For
Consistent Growth: Look for steady upward trends across all three metrics, indicating sustainable business expansion.
Seasonal Patterns & Recovery: Notice recurring seasonal dips and how quickly the company recovers, which reveals business resilience and management effectiveness.
Return on Equity Analysis for Apple Inc.
Analysis of Apple Inc.'s return on equity showing how effectively the company generates profits from shareholders' equity.
Return on Equity Analysis for Apple Inc.
Apple Inc. recorded a return on equity of 151.9% in Sep 2025, which is classified as Excellent .
This exceptional ROE indicates highly efficient use of equity, making Apple Inc. a potentially attractive investment for growth-focused investors seeking superior returns.
Net Income vs Free Cash Flow Analysis for Apple Inc.
Comparison of Apple Inc.'s net income and free cash flow showing the relationship between profitability and actual cash generation.
FCF/NI Ratio for Apple Inc.
Apple Inc. has a Free Cash Flow to Net Income ratio of 88.2% (0.88) in Sep 2025.
Business Model Insights:
• Asset-light businesses (software, services) typically show ratios above 100%
• Capital-intensive businesses (manufacturing, utilities) often show ratios of 70-90%
• Growing companies may show lower ratios due to working capital investment
Understanding Apple Inc.'s Free Cash Flow vs Net Income
Free Cash Flow is the cash a company generates after paying for capital expenditures. It represents actual cash available for dividends, debt reduction, or reinvestment.
Why it matters: While net income can be influenced by accounting methods, free cash flow shows real cash generation. Companies with strong free cash flow can weather downturns and fund growth without borrowing.
Key insight: When free cash flow consistently exceeds net income, it suggests strong cash management. Significant divergence may indicate working capital changes or major capital investments.
Net Income vs Operating Cash Flow Trend for Apple Inc.
Analysis of Apple Inc.'s net income compared to operating cash flow, showing the relationship between accounting profits and actual cash generated from operations.
Apple Inc. OCF/NI Ratio Analysis
Apple Inc. has an Operating Cash Flow/Net Income Ratio of 99.5% which is good. This shows quality earnings with normal working capital investment.
Understanding Apple Inc.'s Operating Cash Flow vs Net Income
Operating Cash Flow represents the actual cash generated from the company's core business operations, excluding financing and investing activities.
Why it matters: While net income can be affected by non-cash items like depreciation and accounting adjustments, operating cash flow shows the real cash being generated from day-to-day operations.
Key insight: When operating cash flow consistently exceeds net income, it indicates strong cash conversion and efficient working capital management. Significant divergence may signal changes in receivables, inventory, or payables.
Leverage Ratios
Analysis of Apple Inc.'s debt and leverage metrics
Current Ratio Analysis for Apple Inc.
Measures the company's ability to pay short-term obligations with current assets.
Understanding Apple Inc.'s Current Ratio
Current Ratio measures a company's ability to pay short-term debts with current assets. It's calculated as Current Assets ÷ Current Liabilities.
Good range: 1.5 - 3.0. Below 1.0 may indicate liquidity issues, while above 3.0 might suggest inefficient use of current assets.
Key insight: A stable or improving current ratio indicates good liquidity management. Sharp fluctuations may signal changes in working capital or operational challenges. However, some strong companies can have ratios below 1.0 when they collect from customers faster than they pay vendors.
Interest Coverage Ratio Analysis for Apple Inc.
Measures the company's ability to pay interest expenses on outstanding debt.
Apple Inc. has an Interest Coverage Ratio of N/A in Sep 2025 (Minimal Debt) - This typically indicates the company has very low or no interest expenses, suggesting minimal debt burden.
Understanding Interest Coverage Ratio
Interest Coverage Ratio measures a company's ability to pay interest expenses on outstanding debt. It's calculated as Operating Income ÷ Interest Expenses.
Good range: Above 2.5 is generally considered healthy. Below 2.0 may indicate potential difficulties in meeting interest obligations.
Key insight: Higher ratios indicate better ability to service debt obligations. A declining trend may signal increasing financial risk or deteriorating operational performance.
Debt-to-Equity Ratio Analysis for Apple Inc.
Measures the company's financial leverage by comparing total debt to shareholders' equity.
Apple Inc. has a Debt-to-Equity Ratio of 0.11 in Sep 2025 (Excellent) - This indicates conservative debt management and strong financial stability.
Understanding Debt-to-Equity Ratio
Debt-to-Equity Ratio measures a company's financial leverage by comparing total debt to shareholders' equity. It's calculated as Total Debt ÷ Total Shareholders' Equity.
Good range: 0.0-0.3 is excellent, 0.31-0.6 is good, 0.61-1.0 is acceptable. Above 1.0 may indicate high financial risk or aggressive leverage strategy.
Key insight: Lower ratios indicate conservative debt management and financial stability. Higher ratios suggest greater financial risk but may also indicate growth strategies or industry norms. Compare with industry peers for context.
Shares Outstanding Analysis for Apple Inc.
Analysis of Apple Inc.'s shares outstanding showing dilution or share buyback trends over time.
Apple Inc. has 15.00 billion shares outstanding in Sep 2025 with a -2.6% year-over-year change (Moderate Buybacks) - Share reduction suggests buyback activity, which can help improve earnings per share and return value to shareholders.
Long-term trend: Over 10 years (2016-2025), shares outstanding have grown at a -4.2% CAGR (Consistent Buybacks) - Steady share reduction trend, demonstrating capital return discipline.
Understanding Apple Inc.'s Shares Outstanding
Shares Outstanding represents the total number of shares currently held by all shareholders, including restricted shares held by the company's officers and insiders.
Impact on investors: Changes directly affect earnings per share (EPS) and ownership percentage. Share buybacks reduce dilution and can boost EPS, while new issuances may dilute existing shareholders.
Key insight: Decreasing share count often indicates management confidence and commitment to returning value to shareholders. Increasing count should be evaluated in context of growth strategy, acquisitions, or financing needs.
Total Debt Analysis for Apple Inc.
Analysis of Apple Inc.'s total debt showing leverage trends over time.
Understanding Apple Inc.'s Total Debt
Total Debt represents the sum of a company's short-term and long-term debt obligations, including loans, bonds, and lease liabilities.
Impact on investors: Higher debt levels increase financial risk but can also amplify returns. The trend in total debt helps assess the company's leverage strategy and financial health.
Key insight: Rising debt should be evaluated in context of revenue growth and cash generation ability. Declining debt may indicate deleveraging or limited growth investment.