The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 21.24% in 2019 to 25.31% in 2023.
The average EBIT Margin for the period under analysis was 28.87%, with 2020 and 2022 performing the worst and best,
In the current year, Apple was able to cover its interest liabilities 29.92 times – compared to 2019 when it was 19.38times.
The Asset turnover stood at 1.12 times in 2023 from 0.76 in 2019, implying a low performance on Assets of the business in relation to revenue.
Profitability
The revenue of Apple has fluctuated year on year. The revenue increased by 5.51% between 2019 and 2020 and a further 7.79% increase was recorded between 2021 and 2022. There also occurred a decrease of -2.80% between 2022 and 2023 (the current period).
Apple’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks fair, as the current ratio increased from 0.88:1 to 0.99:1 on the last year. Which implies that the company still does have enough assets to settle its current liabilities.
Capital Structure
Apple is both equity and debt financed.
The debt-to-equity (D/E) ratio has been increasing year on year. The gearing position of the company appears to be high as it stood at 141% in the current year.
