Apple Inc (AAPL)
Return on total capital
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 123,216,000 | 121,625,000 | 120,004,000 | 121,416,000 | 117,669,000 | 115,153,000 | 115,207,000 | 116,725,000 | 122,034,000 | 120,470,000 | 121,719,000 | 119,570,000 | 111,852,000 | 103,467,000 | 92,267,000 | 77,478,000 | 69,964,000 | 71,366,000 | 70,309,000 | 71,220,000 |
| Long-term debt | US$ in thousands | 85,750,000 | 86,196,000 | 91,831,000 | 95,088,000 | 95,281,000 | 98,071,000 | 97,041,000 | 99,627,000 | 98,959,000 | 94,700,000 | 103,323,000 | 106,629,000 | 109,106,000 | 105,752,000 | 108,642,000 | 99,281,000 | 98,667,000 | 94,048,000 | 89,086,000 | 93,078,000 |
| Total stockholders’ equity | US$ in thousands | 56,950,000 | 66,708,000 | 74,194,000 | 74,100,000 | 62,146,000 | 60,274,000 | 62,158,000 | 56,727,000 | 50,672,000 | 58,107,000 | 67,399,000 | 71,932,000 | 63,090,000 | 64,280,000 | 69,178,000 | 66,224,000 | 65,339,000 | 72,282,000 | 78,425,000 | 89,531,000 |
| Return on total capital | 86.35% | 79.54% | 72.28% | 71.76% | 74.75% | 72.72% | 72.37% | 74.65% | 81.56% | 78.84% | 71.30% | 66.96% | 64.96% | 60.85% | 51.89% | 46.81% | 42.66% | 42.91% | 41.97% | 39.00% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 generally positive trend over the past several quarters, indicating the company's ability to generate profits relative to the total capital invested in its operations. The return on total capital has experienced fluctuations but has remained relatively high, ranging from 39.00% to 86.35%.
The upward trend in return on total capital suggests that Apple has been effectively utilizing its capital to generate returns for its shareholders. The recent values of 86.35% in September 2024, 79.54% in June 2024, and 72.28% in March 2024 indicate a strong performance in terms of profitability relative to the total capital employed.
These positive results may be attributed to Apple's successful business strategies, innovative products, strong brand loyalty, and efficient capital allocation. Investors and stakeholders may view the consistent high return on total capital as a positive indicator of Apple's financial health and operational efficiency.
Overall, Apple Inc's return on total capital reflects the company's ability to generate significant returns on the capital it has invested in its operations, which is essential for sustaining growth and creating long-term value for shareholders.
Peer comparison
Sep 30, 2024