Apple Inc (AAPL)
Net profit margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 96,995,000 | 99,803,000 | 94,680,000 | 57,411,000 | 55,256,000 |
| Revenue | US$ in thousands | 379,352,000 | 391,397,000 | 363,172,000 | 271,642,000 | 256,598,000 |
| Net profit margin | 25.57% | 25.50% | 26.07% | 21.13% | 21.53% |
September 30, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $96,995,000K ÷ $379,352,000K
= 25.57%
The net profit margin is a key financial ratio that measures the profitability of a company by expressing its net income as a percentage of its revenue. Analyzing Apple Inc's net profit margin over the past five years provides insight into the company's ability to efficiently convert revenue into profit.
Apple Inc's net profit margin has remained relatively stable over the past five years, ranging from 20.91% to 25.88%. In 2023, the net profit margin stood at 25.31%, indicating that the company retained approximately 25.31% of its revenue as net income after accounting for all expenses. This demonstrates Apple's consistent ability to generate significant profits relative to its revenue.
The slight fluctuations in the net profit margin could be attributable to changes in the company's cost structure, pricing strategies, or the introduction of new products and services. The relatively high net profit margin suggests that Apple has effectively managed its expenses while maintaining strong revenue streams.
Furthermore, the consistent profitability indicated by the stable net profit margin suggests that Apple has a strong business model and is adept at managing its operational costs and revenue generation.
In conclusion, Apple Inc's net profit margin has remained robust over the past five years, reflecting the company's ability to generate significant profits relative to its revenue and effectively manage its costs, thereby reinforcing its position as a financially sound and profitable enterprise.
Peer comparison
Sep 30, 2023