Apple Inc (AAPL)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.59% | 43.63% | 42.08% | 38.64% | 38.34% |
| Operating profit margin | 30.13% | 30.52% | 30.00% | 24.40% | 24.91% |
| Pretax margin | 29.98% | 30.43% | 30.07% | 24.70% | 25.62% |
| Net profit margin | 25.57% | 25.50% | 26.07% | 21.13% | 21.53% |
Apple Inc's profitability ratios have shown consistent improvement over the years. The gross profit margin, which represents the percentage of revenue left after subtracting the cost of goods sold, has steadily increased from 37.82% in 2019 to 44.13% in 2023. This indicates that Apple has been able to effectively manage its production costs and generate higher gross profits.
The operating profit margin, which reflects the percentage of revenue remaining after deducting operating expenses, has generally remained stable, ranging from 24.15% in 2020 to 30.29% in 2022. This suggests that Apple has been successful in controlling its operational expenses while generating relatively steady operating profits.
Similarly, the pretax margin, which measures the proportion of revenue that translates to pre-tax profits, has exhibited a consistent trend, with a slight variation from 24.44% in 2020 to 30.20% in 2022. This indicates that Apple has effectively managed its non-operating expenses and has been able to generate higher pre-tax profits from its revenue.
The net profit margin, which indicates the percentage of revenue remaining as net income after all expenses, has also shown improvement over the years. The net profit margin has increased from 20.91% in 2020 to 25.31% in 2023, reflecting Apple's ability to generate higher net profits relative to its revenue.
Overall, the profitability ratios of Apple Inc demonstrate a consistent and positive trend, indicating the company's ability to effectively manage costs, generate higher profits, and improve its overall financial performance.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 32.42% | 33.86% | 31.04% | 20.47% | 18.89% |
| Return on assets (ROA) | 27.51% | 28.29% | 26.97% | 17.73% | 16.32% |
| Return on total capital | 74.75% | 81.56% | 64.96% | 42.66% | 38.02% |
| Return on equity (ROE) | 156.08% | 196.96% | 150.07% | 87.87% | 61.06% |
Apple Inc's profitability ratios show a generally positive trend over the past five years. The operating return on assets (Operating ROA) has been consistently strong, with a peak of 33.86% in 2022 and a slight decrease to 32.42% in 2023. This indicates that Apple has been efficient in generating operating income relative to its total assets.
Similarly, the return on assets (ROA) has also seen a steady improvement, reaching 28.29% in 2022 before declining slightly to 27.51% in 2023. This ratio reflects the company's ability to generate net income from its assets, and the sustained upward trend is a positive sign for investors.
The return on total capital has shown a significant increase in recent years, jumping to 69.95% in 2022 and remaining high at 65.98% in 2023. This indicates that Apple has been effectively utilizing its total capital to generate returns for shareholders, reflecting strong financial performance.
The return on equity (ROE) has also experienced remarkable growth, reaching 196.96% in 2022 and remaining high at 156.08% in 2023. This indicates that the company has been highly efficient in using shareholder equity to generate profits.
Overall, Apple Inc's profitability ratios demonstrate a consistent and impressive performance, reflecting the company's ability to generate strong returns from its operating activities, assets, capital, and equity. These trends are likely to instill confidence in investors and stakeholders regarding Apple's financial health and performance.