Apple Inc (AAPL)
Gross profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 169,148,000 | 170,782,000 | 152,836,000 | 104,956,000 | 98,392,000 |
| Revenue | US$ in thousands | 379,352,000 | 391,397,000 | 363,172,000 | 271,642,000 | 256,598,000 |
| Gross profit margin | 44.59% | 43.63% | 42.08% | 38.64% | 38.34% |
September 30, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $169,148,000K ÷ $379,352,000K
= 44.59%
Apple Inc's gross profit margin has shown a consistent upward trend over the past five years. The gross profit margin, which represents the percentage of revenue that exceeds the cost of goods sold, increased from 37.82% in 2019 to 44.13% in 2023. This indicates the company's ability to effectively control production costs and generate higher margins on its products.
The steady improvement in gross profit margin reflects Apple's ability to maintain pricing power, manage production costs, and possibly introduce higher-margin products. This trend suggests that Apple has been successful in optimizing its supply chain, negotiating favorable contracts with suppliers, and leveraging economies of scale to enhance profitability.
The increasing gross profit margin is a positive indicator of Apple's financial strength and efficiency in generating profits from its core operations. It also reflects the company's ability to innovate and differentiate its products in a competitive market, leading to higher margins.
Overall, the steady growth in Apple's gross profit margin demonstrates the company's strong operational performance and solid financial management, which bodes well for its long-term sustainability and profitability.
Peer comparison
Sep 30, 2023