Apple Inc (AAPL)
Return on equity (ROE)
| 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 |
| Total stockholders’ equity | US$ in thousands | 62,146,000 | 50,672,000 | 63,090,000 | 65,339,000 | 90,488,000 |
| ROE | 156.08% | 196.96% | 150.07% | 87.87% | 61.06% |
September 30, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $96,995,000K ÷ $62,146,000K
= 156.08%
Apple Inc's return on equity (ROE) has shown a significant upward trend over the past five years. As of September 30, 2023, the ROE stands at an impressive 156.08%, which represents a slight decrease from the previous year but is substantially higher than the levels observed in the earlier years.
The substantial increase in ROE from 61.06% in 2019 to 156.08% in 2023 indicates that Apple has become more efficient in generating profits from shareholders' equity. This improvement in ROE suggests that Apple has been effectively utilizing its equity to generate higher returns for its shareholders.
The consistent high ROE figures are indicative of Apple's strong profitability and efficiency in utilizing its shareholders' investments. The upward trajectory of ROE suggests that the company has been successful in maximizing its profitability while effectively managing its equity capital.
It is important to note that while a high ROE is generally a positive indicator, investors should also consider other factors such as the company's risk profile and industry benchmarks. Additionally, the decrease in ROE from the previous year needs to be further evaluated to understand the underlying reasons and its potential impact on future financial performance.
Peer comparison
Sep 30, 2023