Apple Inc (AAPL)
Operating return on assets (Operating ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 114,301,000 | 119,437,000 | 108,949,000 | 66,288,000 | 63,930,000 |
| Total assets | US$ in thousands | 352,583,000 | 352,755,000 | 351,002,000 | 323,888,000 | 338,516,000 |
| Operating ROA | 32.42% | 33.86% | 31.04% | 20.47% | 18.89% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $114,301,000K ÷ $352,583,000K
= 32.42%
The operating return on assets (operating ROA) is a crucial financial ratio that evaluates a company's ability to generate operating profit from its assets. By analyzing the trend of Apple Inc's operating ROA over the past five years (from Sep 30, 2019, to Sep 30, 2023), we can gain insights into the company's operational efficiency and asset utilization.
The operating ROA for Apple Inc has exhibited a generally positive trend over the past five years, indicating a consistent improvement in the company's ability to generate operating profit relative to its assets. The operating ROA increased from 18.89% in Sep 28, 2019, to 32.42% in Sep 30, 2023. This upward trend suggests that the company has been effectively utilizing its assets to drive operating profitability.
The significant improvement in operating ROA from 18.89% to 32.42% over the five-year period reflects Apple's enhanced operational efficiency and stronger asset management. This increase indicates that Apple has been successful in maximizing the productivity of its assets to generate higher operating profits. The company has likely implemented more effective operational strategies and cost controls, resulting in improved profitability relative to its asset base.
However, it's important to note the slight dip in operating ROA from 33.86% in Sep 24, 2022, to 32.42% in Sep 30, 2023. This decrease may necessitate further examination to understand the underlying reasons for the decline. It could be due to factors such as changes in the company's operating expenses, shifts in revenue composition, or alterations in the asset base. Such fluctuations require careful consideration to assess their impact on Apple's operational performance.
Overall, the rising trend in Apple Inc's operating ROA signifies the company's effective utilization of its assets to drive operating profitability. This demonstrates management's ability to optimize resource allocation and enhance operational effectiveness, ultimately contributing to the company's financial performance and shareholder value.
Peer comparison
Sep 30, 2023