Apple Inc (AAPL)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.27 | 0.27 | 0.29 | 0.29 | 0.29 | 0.28 | 0.28 | 0.29 | 0.28 | 0.31 | 0.32 | 0.32 | 0.28 | 0.30 | 0.30 | 0.28 | 0.27 | 0.27 | 0.26 | 0.26 |
| Debt-to-capital ratio | 0.56 | 0.61 | 0.62 | 0.61 | 0.64 | 0.66 | 0.62 | 0.61 | 0.60 | 0.63 | 0.62 | 0.61 | 0.60 | 0.60 | 0.57 | 0.53 | 0.51 | 0.50 | 0.47 | 0.46 |
| Debt-to-equity ratio | 1.28 | 1.53 | 1.63 | 1.56 | 1.76 | 1.95 | 1.63 | 1.53 | 1.48 | 1.73 | 1.65 | 1.57 | 1.50 | 1.51 | 1.30 | 1.14 | 1.04 | 1.01 | 0.88 | 0.85 |
| Financial leverage ratio | 4.77 | 5.67 | 5.56 | 5.34 | 6.11 | 6.96 | 5.79 | 5.20 | 5.30 | 5.56 | 5.13 | 4.87 | 5.35 | 4.96 | 4.39 | 4.09 | 3.80 | 3.74 | 3.34 | 3.23 |
Apple Inc's solvency ratios show a consistent picture of sound financial health over the period analyzed. The debt-to-assets ratio has remained relatively stable between 0.26 and 0.32, indicating that Apple has been able to effectively manage its debt levels in relation to its total assets.
The debt-to-capital ratio has also shown stability, ranging from 0.46 to 0.66. This ratio indicates the proportion of a company's capital that is funded by debt, and Apple's figures suggest that it has maintained a balanced approach in utilizing debt to finance its operations.
The debt-to-equity ratio has fluctuated more noticeably, but has generally been within a reasonable range between 0.85 and 1.95. This ratio signifies the extent to which a company is reliant on debt financing, and Apple's ratios indicate that it has maintained a level of debt that is sustainable in relation to its equity.
The financial leverage ratio has similarly fluctuated but has generally been between 3.23 and 6.96. This ratio measures the extent to which a company uses debt to finance its operations and indicates Apple's ability to generate returns on its equity capital.
Overall, Apple Inc's solvency ratios suggest that the company has managed its debt levels effectively, maintaining a healthy balance between debt and equity financing to support its operations and growth.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 41.44 | 29.92 | 30.64 | 33.11 | 36.03 | 41.64 | 43.40 | 44.72 | 44.27 | 42.29 | 39.69 | 34.96 | 28.42 | 24.35 | 23.41 | 21.85 | 20.52 | 19.38 | 19.17 | 19.65 |
The interest coverage ratio for Apple Inc has shown a generally stable and healthy trend over the past five years, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently remained well above 1, indicating that Apple's operating income is more than sufficient to cover its interest expenses.
In recent quarters, Apple's interest coverage ratio has ranged between 29.92 and 44.72, with the latest ratio being 41.44 as of December 31, 2023. This suggests that Apple's earnings before interest and taxes (EBIT) are more than 41 times higher than its interest expenses, demonstrating a strong ability to service its debt.
Overall, a consistently high interest coverage ratio reflects Apple's financial stability and ability to manage its debt effectively, which is crucial for investors and creditors assessing the company's risk profile. However, it is important to continue monitoring this ratio to ensure that Apple maintains its ability to meet its interest payments amidst changing market conditions.