Apple Inc (AAPL)
Debt-to-capital ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.60 | 0.61 | 0.66 | 0.63 | 0.60 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $85,750,000K ÷ ($85,750,000K + $56,950,000K)
= 0.60
The debt-to-capital ratio of Apple Inc has shown some fluctuation over the past five years. The ratio decreased from 0.66 in 2022 to 0.63 in 2021 before slightly increasing to 0.61 in 2023. However, in the most recent period of Sep 30, 2024, the ratio rose to 0.60, which is consistent with the ratio reported in Sep 30, 2020.
A debt-to-capital ratio of 0.60 signifies that 60% of Apple's capital structure is funded by debt, with the remaining 40% funded by equity. This ratio indicates that Apple relies moderately on debt to finance its operations and growth initiatives. It is important to note that this level of debt may be considered manageable for the company, as it has remained relatively stable over the years.
Overall, the debt-to-capital ratio provides insight into Apple's financial leverage and risk exposure. Further analysis of the company's debt maturity profile, interest coverage ratio, and profitability metrics would provide a more comprehensive understanding of its financial health and ability to meet its debt obligations.
Peer comparison
Sep 30, 2024