Apple Inc (AAPL)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 123,216,000 | 117,669,000 | 122,034,000 | 111,852,000 | 69,964,000 |
| Long-term debt | US$ in thousands | 85,750,000 | 95,281,000 | 98,959,000 | 109,106,000 | 98,667,000 |
| Total stockholders’ equity | US$ in thousands | 56,950,000 | 62,146,000 | 50,672,000 | 63,090,000 | 65,339,000 |
| Return on total capital | 86.35% | 74.75% | 81.56% | 64.96% | 42.66% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $123,216,000K ÷ ($85,750,000K + $56,950,000K)
= 86.35%
Apple Inc's return on total capital has shown a consistent upward trend over the past five years. The company's return on total capital increased from 42.66% in September 2020 to 86.35% in September 2024, reflecting significant improvement in the utilization of its capital. This indicates that Apple has been able to generate substantial returns relative to its total capital employed, showcasing efficient capital management and profitability. The consistent growth in return on total capital suggests that Apple has been successful in maximizing its overall capital efficiency and delivering value to its shareholders.
Peer comparison
Sep 30, 2024