Apple Inc (AAPL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 62,146,000 | 50,672,000 | 63,090,000 | 65,339,000 | 90,488,000 |
| Debt-to-capital ratio | 0.61 | 0.66 | 0.63 | 0.60 | 0.50 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $95,281,000K ÷ ($95,281,000K + $62,146,000K)
= 0.61
The debt-to-capital ratio of Apple Inc has fluctuated over the past five years, ranging from 0.54 to 0.70. This ratio indicates the proportion of the company's capital that is financed by debt. A higher ratio suggests a larger reliance on debt to fund operations and expansion, while a lower ratio signifies a lesser reliance on debt.
In 2019, the debt-to-capital ratio was at its lowest, standing at 0.54, indicating a lower proportion of debt in the company's capital structure. However, in 2022, the ratio increased to 0.70, reflecting a higher reliance on debt compared to the previous year.
The most recent figure for September 30, 2023, shows the ratio at 0.64, indicating a slight decrease from the previous year. This suggests that the company's debt financing relative to its capital has reduced, potentially due to various factors such as debt repayment, changes in capital structure, or business expansion through equity financing.
Overall, while the debt-to-capital ratio has fluctuated, it is essential to consider the trend in conjunction with other financial metrics and market conditions to assess Apple Inc's financial leverage and risk.
Peer comparison
Sep 30, 2023