Apple Inc (AAPL)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 95,281,000 | 98,959,000 | 109,106,000 | 98,667,000 | 91,807,000 |
| Total assets | US$ in thousands | 352,583,000 | 352,755,000 | 351,002,000 | 323,888,000 | 338,516,000 |
| Debt-to-assets ratio | 0.27 | 0.28 | 0.31 | 0.30 | 0.27 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $95,281,000K ÷ $352,583,000K
= 0.27
The debt-to-assets ratio is a key financial metric that measures the proportion of a company's assets that are financed by debt. A lower ratio indicates less reliance on debt to finance assets, while a higher ratio suggests a greater level of debt financing.
In the case of Apple Inc, the trend of the debt-to-assets ratio over the past five years shows a generally favorable position. The ratio has exhibited a slight fluctuation, hovering around the range of 0.32 to 0.36 during this period.
The decreasing trend in the ratio from 0.36 in 2021 to 0.32 in 2019 indicates a reduction in the proportion of debt financing relative to total assets. This could be viewed as a positive indicator, as it signifies a lower financial risk and potential for greater resilience to economic downturns or interest rate hikes.
The consistent maintenance of a relatively low debt-to-assets ratio is a sign of Apple's financial strength and stability. It suggests that the company has been able to effectively manage its capital structure and leverage, demonstrating a prudent approach to financing its operations and investments.
Overall, the debt-to-assets ratio for Apple Inc reflects a healthy balance between debt and assets, showcasing the company's ability to efficiently manage its capital structure and fund its operations without overreliance on debt financing.
Peer comparison
Sep 30, 2023