Stock Analysis on Net
Stock Analysis on Net

Apple Inc. (NASDAQ:AAPL)

Analysis of Investments

Microsoft Excel

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Apple Inc., adjustment to net income

US$ in millions

Microsoft Excel
12 months ended: Sep 28, 2024 Sep 30, 2023 Sep 24, 2022 Sep 25, 2021 Sep 26, 2020 Sep 28, 2019
Net income (as reported) 93,736 96,995 99,803 94,680 57,411 55,256
Add: Change in unrealized gains (losses) on marketable debt securities, net of tax 6,054 1,816 (11,899) (967) 1,139 3,827
Net income (adjusted) 99,790 98,811 87,904 93,713 58,550 59,083

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).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Apple Inc., adjusted profitability ratios

Microsoft Excel
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 25.52% 25.78% 22.29% 25.62% 21.33% 22.71%
Return on Equity (ROE)
Reported ROE 164.59% 156.08% 196.96% 150.07% 87.87% 61.06%
Adjusted ROE 175.22% 159.00% 173.48% 148.54% 89.61% 65.29%
Return on Assets (ROA)
Reported ROA 25.68% 27.51% 28.29% 26.97% 17.73% 16.32%
Adjusted ROA 27.34% 28.02% 24.92% 26.70% 18.08% 17.45%

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).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Apple Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by shareholders’ equity. Apple Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Apple Inc. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024.

Apple Inc., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 99,790 98,811 87,904 93,713 58,550 59,083
Net sales 391,035 383,285 394,328 365,817 274,515 260,174
Profitability Ratio
Adjusted net profit margin2 25.52% 25.78% 22.29% 25.62% 21.33% 22.71%

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 × 99,790 ÷ 391,035 = 25.52%

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

Adjusted Return on Equity (ROE)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 99,790 98,811 87,904 93,713 58,550 59,083
Shareholders’ equity 56,950 62,146 50,672 63,090 65,339 90,488
Profitability Ratio
Adjusted ROE2 175.22% 159.00% 173.48% 148.54% 89.61% 65.29%

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 ÷ Shareholders’ equity
= 100 × 99,790 ÷ 56,950 = 175.22%

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

Adjusted Return on Assets (ROA)

Microsoft Excel
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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income 99,790 98,811 87,904 93,713 58,550 59,083
Total assets 364,980 352,583 352,755 351,002 323,888 338,516
Profitability Ratio
Adjusted ROA2 27.34% 28.02% 24.92% 26.70% 18.08% 17.45%

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 ÷ Total assets
= 100 × 99,790 ÷ 364,980 = 27.34%

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