Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Apple Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
Federal	5,571)	9,445)	7,890)	8,257)	6,306)	6,384)
State	1,726)	1,570)	1,519)	1,620)	455)	475)
Foreign	25,483)	8,750)	8,996)	9,424)	3,134)	3,962)
Current	32,780)	19,765)	18,405)	19,301)	9,895)	10,821)
Federal	(3,080)	(3,644)	(2,265)	(7,176)	(3,619)	(2,939)
State	(298)	(49)	84)	(338)	21)	(67)
Foreign	347)	669)	3,076)	2,740)	3,383)	2,666)
Deferred	(3,031)	(3,024)	895)	(4,774)	(215)	(340)
Provision for income taxes	29,749)	16,741)	19,300)	14,527)	9,680)	10,481)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Apple Inc. current increased from 2022 to 2023 and from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Apple Inc. deferred decreased from 2022 to 2023 and from 2023 to 2024.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Apple Inc. provision for income taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Apple Inc., effective income tax rate (EITR) reconciliation

		Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
	Statutory federal income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	21.00%
	Effective tax rate	24.10%	14.70%	16.20%	13.30%	14.40%	15.90%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Apple Inc. effective tax rate decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Apple Inc., components of deferred tax assets and liabilities

US$ in millions

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
Capitalized research and development	10,739)	6,294)	1,267)	—)	—)	—)
Tax credit carryforwards	8,856)	8,302)	6,962)	4,262)	797)	—)
Accrued liabilities and other reserves	6,114)	6,365)	6,515)	5,895)	4,934)	5,196)
Deferred revenue	3,413)	4,571)	5,742)	5,399)	1,638)	1,372)
Lease liabilities	2,410)	2,421)	2,400)	2,406)	2,038)	—)
Unrealized losses	1,173)	2,447)	2,913)	—)	—)	—)
Other	2,168)	2,343)	1,825)	7,214)	9,929)	13,819)
Deferred tax assets	34,873)	32,743)	27,624)	25,176)	19,336)	20,387)
Valuation allowance	(8,866)	(8,374)	(7,530)	(4,903)	(1,041)	(747)
Deferred tax assets, net	26,007)	24,369)	20,094)	20,273)	18,295)	19,640)
Depreciation	(2,551)	(1,998)	—)	—)	—)	—)
Right-of-use assets	(2,125)	(2,179)	(2,163)	(2,167)	(1,862)	—)
Minimum tax on foreign earnings	(1,674)	(1,940)	(1,983)	(4,318)	(7,045)	(10,809)
Unrealized gains	—)	(511)	(942)	(203)	(526)	(186)
Other	(455)	(490)	(469)	(512)	(705)	(600)
Deferred tax liabilities	(6,805)	(7,118)	(5,557)	(7,200)	(10,138)	(11,595)
Net deferred tax assets (liabilities)	19,202)	17,251)	14,537)	13,073)	8,157)	8,045)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Apple Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets, net	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Apple Inc. deferred tax assets, net increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Apple Inc. net deferred tax assets (liabilities) increased from 2022 to 2023 and from 2023 to 2024.

Apple Inc., deferred tax assets and liabilities, classification

US$ in millions

		Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
	Deferred tax assets	19,499)	17,852)	15,375)	13,073)	8,157)	8,045)
	Deferred tax liabilities	297)	601)	838)	—)	—)	—)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Apple Inc. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Apple Inc. deferred tax liabilities decreased from 2022 to 2023 and from 2023 to 2024.

Apple Inc., adjustments to financial statements

US$ in millions

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
Adjustment to Total Assets
Total assets (as reported)	364,980)	352,583)	352,755)	351,002)	323,888)	338,516)
Less: Noncurrent deferred tax assets, net	19,499)	17,852)	15,375)	13,073)	8,157)	8,045)
Total assets (adjusted)	345,481)	334,731)	337,380)	337,929)	315,731)	330,471)
Adjustment to Total Liabilities
Total liabilities (as reported)	308,030)	290,437)	302,083)	287,912)	258,549)	248,028)
Less: Noncurrent deferred tax liabilities, net	297)	601)	838)	—)	—)	—)
Total liabilities (adjusted)	307,733)	289,836)	301,245)	287,912)	258,549)	248,028)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	56,950)	62,146)	50,672)	63,090)	65,339)	90,488)
Less: Net deferred tax assets (liabilities)	19,202)	17,251)	14,537)	13,073)	8,157)	8,045)
Shareholders’ equity (adjusted)	37,748)	44,895)	36,135)	50,017)	57,182)	82,443)
Adjustment to Net Income
Net income (as reported)	93,736)	96,995)	99,803)	94,680)	57,411)	55,256)
Add: Deferred income tax expense (benefit)	(3,031)	(3,024)	895)	(4,774)	(215)	(340)
Net income (adjusted)	90,705)	93,971)	100,698)	89,906)	57,196)	54,916)

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

Apple Inc., Financial Data: Reported vs. Adjusted

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Apple Inc., adjusted financial ratios

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
Net Profit Margin
Reported net profit margin	23.97%	25.31%	25.31%	25.88%	20.91%	21.24%
Adjusted net profit margin	23.20%	24.52%	25.54%	24.58%	20.84%	21.11%
Total Asset Turnover
Reported total asset turnover	1.07	1.09	1.12	1.04	0.85	0.77
Adjusted total asset turnover	1.13	1.15	1.17	1.08	0.87	0.79
Financial Leverage
Reported financial leverage	6.41	5.67	6.96	5.56	4.96	3.74
Adjusted financial leverage	9.15	7.46	9.34	6.76	5.52	4.01
Return on Equity (ROE)
Reported ROE	164.59%	156.08%	196.96%	150.07%	87.87%	61.06%
Adjusted ROE	240.29%	209.31%	278.67%	179.75%	100.02%	66.61%
Return on Assets (ROA)
Reported ROA	25.68%	27.51%	28.29%	26.97%	17.73%	16.32%
Adjusted ROA	26.25%	28.07%	29.85%	26.60%	18.12%	16.62%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Apple Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Apple Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Apple Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Apple Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Apple Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Apple Inc., Financial Ratios: Reported vs. Adjusted

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	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	93,736)	96,995)	99,803)	94,680)	57,411)	55,256)
Net sales	391,035)	383,285)	394,328)	365,817)	274,515)	260,174)
Profitability Ratio
Net profit margin¹	23.97%	25.31%	25.31%	25.88%	20.91%	21.24%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	90,705)	93,971)	100,698)	89,906)	57,196)	54,916)
Net sales	391,035)	383,285)	394,328)	365,817)	274,515)	260,174)
Profitability Ratio
Adjusted net profit margin²	23.20%	24.52%	25.54%	24.58%	20.84%	21.11%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 93,736 ÷ 391,035 = 23.97%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 90,705 ÷ 391,035 = 23.20%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Apple Inc. adjusted net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net sales	391,035)	383,285)	394,328)	365,817)	274,515)	260,174)
Total assets	364,980)	352,583)	352,755)	351,002)	323,888)	338,516)
Activity Ratio
Total asset turnover¹	1.07	1.09	1.12	1.04	0.85	0.77
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Net sales	391,035)	383,285)	394,328)	365,817)	274,515)	260,174)
Adjusted total assets	345,481)	334,731)	337,380)	337,929)	315,731)	330,471)
Activity Ratio
Adjusted total asset turnover²	1.13	1.15	1.17	1.08	0.87	0.79

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

2024 Calculations

¹ Total asset turnover = Net sales ÷ Total assets
= 391,035 ÷ 364,980 = 1.07

² Adjusted total asset turnover = Net sales ÷ Adjusted total assets
= 391,035 ÷ 345,481 = 1.13

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Apple Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	364,980)	352,583)	352,755)	351,002)	323,888)	338,516)
Shareholders’ equity	56,950)	62,146)	50,672)	63,090)	65,339)	90,488)
Solvency Ratio
Financial leverage¹	6.41	5.67	6.96	5.56	4.96	3.74
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	345,481)	334,731)	337,380)	337,929)	315,731)	330,471)
Adjusted shareholders’ equity	37,748)	44,895)	36,135)	50,017)	57,182)	82,443)
Solvency Ratio
Adjusted financial leverage²	9.15	7.46	9.34	6.76	5.52	4.01

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

2024 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 364,980 ÷ 56,950 = 6.41

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 345,481 ÷ 37,748 = 9.15

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Apple Inc. adjusted financial leverage ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	93,736)	96,995)	99,803)	94,680)	57,411)	55,256)
Shareholders’ equity	56,950)	62,146)	50,672)	63,090)	65,339)	90,488)
Profitability Ratio
ROE¹	164.59%	156.08%	196.96%	150.07%	87.87%	61.06%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	90,705)	93,971)	100,698)	89,906)	57,196)	54,916)
Adjusted shareholders’ equity	37,748)	44,895)	36,135)	50,017)	57,182)	82,443)
Profitability Ratio
Adjusted ROE²	240.29%	209.31%	278.67%	179.75%	100.02%	66.61%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

2024 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 93,736 ÷ 56,950 = 164.59%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 90,705 ÷ 37,748 = 240.29%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Apple Inc. adjusted ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024.

	Sep 28, 2024	Sep 30, 2023	Sep 24, 2022	Sep 25, 2021	Sep 26, 2020	Sep 28, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	93,736)	96,995)	99,803)	94,680)	57,411)	55,256)
Total assets	364,980)	352,583)	352,755)	351,002)	323,888)	338,516)
Profitability Ratio
ROA¹	25.68%	27.51%	28.29%	26.97%	17.73%	16.32%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	90,705)	93,971)	100,698)	89,906)	57,196)	54,916)
Adjusted total assets	345,481)	334,731)	337,380)	337,929)	315,731)	330,471)
Profitability Ratio
Adjusted ROA²	26.25%	28.07%	29.85%	26.60%	18.12%	16.62%

Based on: 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-09-24), 10-K (reporting date: 2021-09-25), 10-K (reporting date: 2020-09-26), 10-K (reporting date: 2019-09-28).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 93,736 ÷ 364,980 = 25.68%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 90,705 ÷ 345,481 = 26.25%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Apple Inc. adjusted ROA deteriorated from 2022 to 2023 and from 2023 to 2024.

Apple Inc. (NASDAQ:AAPL)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Apple Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Apple Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)