Apple

Key Performance Metrics

  • The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 21.09% in 2017 to 25.88% in 2021.
  • The average EBIT Margin for the period under analysis was 26.39%, with 2020 and 2021 performing the worst and best, respectively.
  • In the current year, Apple was able to cover its interest liabilities 422 times in the current year- compared to 2017 when it was 22.4 times.
  • The Asset turnover stood at 1.04 times in 2021 from 0.61 in 2017, implying a high performance on Assets of the business in relation to revenue.

Profitability

  • The revenue of Apple has increased year on year. The revenue increased by 15.9% between 2017 and 2018 and a further 2% decrease was recorded between 2018 and 2019. There also occurred an increase of 33.3% between 2020 and 2021 (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 strong/poor, as current ratio/acid test increased/decreased from 2.2:1 to 3.6:1 on the last year. Which implies that the company [does not have]/has 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 456% in the current year.

Source: Apple Annual Report

Share This Showroom

Open chat
1
Need Help?
Powered by BFI Insights
Hello 👋
How can we assist you today?