Common-Size Income Statement
Quarterly Data
Apple Inc., common-size consolidated income statement (quarterly data)
Based on: 10-K (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-Q (reporting date: 2024-12-28), 10-K (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-Q (reporting date: 2023-12-30), 10-K (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-Q (reporting date: 2022-12-31), 10-K (reporting date: 2022-09-24), 10-Q (reporting date: 2022-06-25), 10-Q (reporting date: 2022-03-26), 10-Q (reporting date: 2021-12-25), 10-K (reporting date: 2021-09-25), 10-Q (reporting date: 2021-06-26), 10-Q (reporting date: 2021-03-27), 10-Q (reporting date: 2020-12-26), 10-K (reporting date: 2020-09-26), 10-Q (reporting date: 2020-06-27), 10-Q (reporting date: 2020-03-28), 10-Q (reporting date: 2019-12-28).
- Products and Services Revenue Composition
- There is a fluctuating pattern in the proportion of net sales derived from products and services. The product sales percentage exhibits oscillations around the 70% to 86% range, with a general downward trend in more recent quarters toward the lower 70% range. Conversely, services show a corresponding inverse trend, increasing their share from around 13% to levels exceeding 28% in some recent quarters, indicating a gradual shift towards service-based revenue contributions.
- Cost of Sales
- The cost of sales as a percentage of net sales generally shows a declining trend over the observed periods, moving from above 61% to an approximate range of 52% to 57% in later quarters. Products account for the largest portion of cost of sales, with a fluctuating but slightly decreasing cost ratio, while services consistently represent a smaller yet variable share. This trend suggests some improvement in cost efficiency or shifts in product and service mix.
- Gross Margin
- Gross margin percentages demonstrate an improving trend over time, gradually rising from about 38% in early periods to above 47% in the most recent quarter. This steady enhancement in gross margin aligns with the reduction in cost of sales, indicating better overall profitability on the core business operations.
- Operating Expenses
- Research and development (R&D) and selling, general, and administrative (SG&A) expenses fluctuate markedly but tend to increase in proportion to net sales in most quarters, with R&D hitting peaks near 9% in later periods. Total operating expenses thus range roughly between 10% and 16%, with recent observations closer to the upper end of this range, reflecting continued investment in innovation and administrative overhead.
- Operating Income
- Operating income as a proportion of net sales shows variability with general strength, ranging from just above 21% to a peak exceeding 34%. The trend is slightly upward overall, highlighting solid operational profitability despite rising operating expenses, supported by strong gross margins.
- Other Income and Expenses
- The net effect of other income and expenses remains mostly minor relative to net sales, with values fluctuating near zero and occasionally leaning negative. These variations have a marginal impact on overall profitability.
- Income Before Taxes
- Income before provision for income taxes mirrors the operating income trend closely and showcases strong performance, moving generally between 22% and 34%. This indicates consistent pre-tax profitability.
- Provision for Income Taxes
- The tax provision as a percentage of net sales varies with some volatility, typically between 3% and 5%, although an anomalous spike observed near 15.67% in one quarter skews this figure temporarily. Overall, tax expenses remain a significant but manageable component of earnings.
- Net Income
- Net income margins maintain a generally upward trajectory, moving from the high teens into the high 20% range in several periods, with occasional declines linked to increased tax provisions or cost fluctuations. The net income pattern reflects solid earnings quality and resilient profitability despite operational and market challenges.