Apple Inc (AAPL)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	364,980,000	352,583,000	352,755,000	351,002,000	323,888,000
Total stockholders’ equity	US$ in thousands	56,950,000	62,146,000	50,672,000	63,090,000	65,339,000
Financial leverage ratio		6.41	5.67	6.96	5.56	4.96

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $364,980,000K ÷ $56,950,000K
= 6.41

The financial leverage ratio of Apple Inc has shown fluctuations over the past five years. The ratio increased from 4.96 in 2020 to 6.96 in 2022, indicating a higher level of financial leverage in 2022. This suggests that the company relied more on debt to finance its operations and growth during that period. However, in 2023, the ratio decreased to 5.67, indicating a reduction in the proportion of debt in the company's capital structure.

In 2024, the financial leverage ratio further decreased to 6.41, indicating a continued trend of reducing reliance on debt for financing. It is important to note that a higher financial leverage ratio implies a higher level of financial risk due to the increased use of debt in the capital structure. Conversely, a lower ratio reflects a lower level of financial risk, as the company is less reliant on debt financing. Overall, monitoring changes in the financial leverage ratio can provide insights into Apple Inc's capital structure management and risk profile.