Apple Inc (AAPL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Inventory turnover	35.47	36.78	32.12	31.79	36.06	50.27	44.90	44.41	40.57	35.71	43.66	41.45	40.30	46.66	47.47	55.49	45.10	43.84	52.02	34.68
Receivables turnover	7.66	6.24	9.73	—	7.09	6.42	9.11	8.44	5.76	7.05	10.18	9.79	4.98	7.27	8.47	8.66	6.63	5.62	9.68	9.76
Payables turnover	3.97	3.72	5.06	5.54	4.25	3.88	5.05	4.60	3.21	4.29	5.60	5.39	3.14	4.48	5.35	5.71	4.10	3.89	5.99	5.56
Working capital turnover	39.48	—	—	—	—	—	—	—	67.32	38.82	51.76	21.45	13.52	7.11	6.07	5.57	4.34	4.51	5.66	8.68

The inventory turnover ratio for Apple Inc has been relatively stable over the analyzed periods, ranging from 31.79 to 50.27, with a median value around 40.30. This suggests that Apple is efficiently managing its inventory levels, with the ability to sell and replace its inventory multiple times within a year.

The receivables turnover ratio shows some fluctuation, varying from 5.62 to 10.18, indicating that Apple collects its receivables at a reasonable pace. A higher turnover ratio implies that the company is efficient in collecting outstanding receivables, thus improving its cash flow cycle.

The payables turnover ratio has also exhibited some variability, ranging from 3.14 to 5.71, with a median value around 4.48. A higher payables turnover ratio indicates that Apple is paying its suppliers more quickly, potentially benefiting from discounts and strengthening its supplier relationships.

The working capital turnover ratio highlights how effectively Apple is utilizing its working capital to generate sales revenue. The data shows a significant disparity across periods, with ratios ranging from 4.34 to 67.32. A higher working capital turnover ratio suggests better efficiency in utilizing the company's resources to drive sales and generate revenue.

In conclusion, Apple Inc's activity ratios indicate efficient management of inventory, receivables, payables, and working capital, which are crucial factors for sustaining a healthy financial position and operational performance.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Days of inventory on hand (DOH)	days	10.29	9.92	11.36	11.48	10.12	7.26	8.13	8.22	9.00	10.22	8.36	8.81	9.06	7.82	7.69	6.58	8.09	8.32	7.02	10.52
Days of sales outstanding (DSO)	days	47.66	58.53	37.53	—	51.46	56.82	40.07	43.23	63.41	51.77	35.85	37.29	73.26	50.20	43.10	42.16	55.02	64.95	37.71	37.38
Number of days of payables	days	91.90	98.14	72.18	65.90	85.96	94.12	72.33	79.31	113.87	85.07	65.23	67.70	116.28	81.48	68.28	63.96	89.12	93.74	60.89	65.60

Days of inventory on hand (DOH) measures how long it takes for Apple Inc to turn its inventory into sales. A lower DOH indicates efficient inventory management. Apple's DOH fluctuated over the past four quarters, ranging from 6.58 to 11.48 days. The trend shows some variation but generally hovers around 8 to 10 days.

Days of sales outstanding (DSO) indicates the average number of days it takes for Apple to collect payment after making a sale. A lower DSO is preferable as it signifies faster cash collection. Apple's DSO ranged from 35.85 to 73.26 days over the recent quarters, with some fluctuations seen in the trend.

Number of days of payables measures how long it takes for Apple to pay its suppliers. A higher number of days of payables suggests that Apple may be taking longer to settle its bills. The trend in Apple's payables days varies, with figures ranging from 60.89 to 116.28 days.

Overall, Apple's activity ratios exhibit some fluctuation, indicating the company's management of inventory, collection of receivables, and payment of payables experienced variations over the past quarters. Analysis of these ratios can provide valuable insights into the efficiency and effectiveness of Apple's operational activities.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Fixed asset turnover	8.79	8.70	8.75	8.81	8.95	9.29	9.54	9.75	9.57	9.21	8.94	8.55	7.70	7.41	7.61	7.40	7.16	6.89	6.81	6.62
Total asset turnover	1.09	1.08	1.14	1.15	1.11	1.11	1.14	1.09	0.99	1.03	1.05	0.96	0.82	0.84	0.86	0.83	0.78	0.76	0.80	0.75

The fixed asset turnover ratio measures how efficiently a company like Apple Inc is utilizing its fixed assets to generate sales. Over the periods provided, Apple's fixed asset turnover ratio has shown a general decreasing trend, indicating a declining efficiency in generating sales from its fixed assets. This could suggest that Apple's investments in fixed assets are not translating into increased sales at a consistent rate.

On the other hand, the total asset turnover ratio measures how efficiently a company is generating sales from all its assets. Apple's total asset turnover ratio has fluctuated over the periods but has generally remained within a moderate range. This indicates that Apple is able to generate a reasonable level of sales given its total asset base.

Comparing the fixed asset turnover ratio to the total asset turnover ratio, it seems that Apple may be experiencing some inefficiencies specifically with its fixed assets, while its overall asset utilization remains relatively stable. This could be a point of concern for Apple's management to address in order to improve overall operational efficiency and profitability.