Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Apple Inc., long-term (investment) activity ratios
Based on: 10-K (reporting date: 2025-09-27), 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).
The analysis of the financial ratios over the periods indicates several notable trends in asset and equity utilization efficiency.
- Net Fixed Asset Turnover
- This ratio demonstrates a peak at 9.36 in the fiscal year ending September 24, 2022, following a steady increase from 7.47 in 2020 to 9.28 in 2021. Subsequently, it exhibits a gradual decline over the next three years, falling to 8.35 by 2025. This suggests that the company initially improved its efficiency in generating revenue from net fixed assets but experienced a moderate reduction in that efficiency in the later periods.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- This adjusted measure mirrors the general trend of the standard net fixed asset turnover ratio but at consistently lower levels, starting at 6.06 in 2020 and reaching a high of 7.51 in 2022. After this peak, the ratio declines steadily each year, decreasing to 6.82 by 2025. The inclusion of operating lease and right-of-use assets reveals somewhat diminished efficiency relative to the net fixed assets alone but follows a parallel performance pattern.
- Total Asset Turnover
- This ratio shows an overall upward trend, rising from 0.85 in 2020 to 1.16 in 2025, with minor fluctuations in the interim years. The growth suggests improved overall utilization of all assets in generating revenue, indicating enhanced operational efficiency or asset management over time.
- Equity Turnover
- The equity turnover ratio exhibits more volatility compared to the other ratios. It climbs significantly from 4.2 in 2020 to a high of 7.78 in 2022, then declines to 6.17 in 2023, fluctuates upwards to 6.87 in 2024, and decreases again to 5.64 in 2025. This pattern may indicate changing dynamics in the company's use of shareholder equity to drive sales, reflecting variations in equity levels or sales performance across the periods.
In summary, there is clear evidence of improved efficiency in the use of total assets over the analyzed period. Net fixed asset turnover ratios peaked mid-period but have shown some decline thereafter, suggesting a potential need to optimize asset usage moving forward. The equity turnover ratio's variability may merit further investigation to understand underlying causes impacting the relationship between sales and equity capital.
Net Fixed Asset Turnover
Apple Inc., net fixed asset turnover calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 416,161) | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | |
| Property, plant and equipment, net | 49,834) | 45,680) | 43,715) | 42,117) | 39,440) | 36,766) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover1 | 8.35 | 8.56 | 8.77 | 9.36 | 9.28 | 7.47 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 70.85 | 57.69 | 46.11 | 37.49 | 71.90 | |
| Cisco Systems Inc. | 26.81 | 25.74 | 27.34 | 25.82 | 21.31 | 20.10 | |
| Dell Technologies Inc. | 15.08 | 13.75 | 16.48 | 18.69 | 14.65 | 15.22 | |
| Super Micro Computer Inc. | 43.55 | 36.21 | 24.54 | 18.17 | 12.95 | 14.28 | |
| Net Fixed Asset Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 10.15 | 10.60 | 11.15 | 10.63 | 9.26 | |
| Net Fixed Asset Turnover, Industry | |||||||
| Information Technology | — | 3.48 | 3.79 | 4.45 | 4.75 | 4.57 | |
Based on: 10-K (reporting date: 2025-09-27), 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).
1 2025 Calculation
Net fixed asset turnover = Net sales ÷ Property, plant and equipment, net
= 416,161 ÷ 49,834 = 8.35
2 Click competitor name to see calculations.
- Net Sales
- The net sales figures exhibit a generally upward trajectory over the examined periods. Starting at 274,515 million USD in 2020, sales increased significantly to 365,817 million USD in 2021, marking a strong growth phase. This positive trend continued into 2022 with sales reaching 394,328 million USD. However, there was a slight decline in 2023 to 383,285 million USD, followed by a recovery in 2024 to 391,035 million USD and further growth in 2025 to 416,161 million USD. Overall, net sales show resilience and recovery after a temporary dip, with a consistent long-term growth pattern.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment depicts steady growth across the years. The asset base increased from 36,766 million USD in 2020 to 49,834 million USD in 2025. This represents a continuous investment in fixed assets, with incremental additions each year, reflecting an expansion or modernization of physical assets. Such growth supports potential capacity increases or technology upgrades within the operational infrastructure.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate sales, shows an initial increase from 7.47 in 2020 to 9.36 in 2022, indicating improved asset utilization. However, from 2022 onwards, the ratio declines gradually to 8.35 by 2025. This downward trend suggests that while fixed assets grew steadily, sales growth relative to asset investment slowed down slightly, potentially indicating diminishing efficiency or that asset investments are outpacing sales growth in the later years.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Apple Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 416,161) | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | |
| Property, plant and equipment, net | 49,834) | 45,680) | 43,715) | 42,117) | 39,440) | 36,766) | |
| Right-of-use assets, operating leases (included in Other non-current assets) | 11,205) | 10,234) | 10,661) | 10,417) | 10,087) | 8,570) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 61,039) | 55,914) | 54,376) | 52,534) | 49,527) | 45,336) | |
| Long-term Activity Ratio | |||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 6.82 | 6.99 | 7.05 | 7.51 | 7.39 | 6.06 | |
| Benchmarks | |||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||||
| Arista Networks Inc. | — | 46.44 | 37.21 | 29.52 | 20.50 | 21.16 | |
| Cisco Systems Inc. | 16.59 | 17.05 | 18.65 | 17.19 | 14.51 | 14.61 | |
| Dell Technologies Inc. | 13.66 | 12.39 | 14.75 | 16.10 | 11.02 | 11.76 | |
| Super Micro Computer Inc. | 27.53 | 33.42 | 23.02 | 16.78 | 12.07 | 12.96 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||||
| Technology Hardware & Equipment | — | 8.31 | 8.57 | 8.94 | 8.34 | 7.41 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||||
| Information Technology | — | 3.06 | 3.33 | 3.85 | 4.03 | 3.87 | |
Based on: 10-K (reporting date: 2025-09-27), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Net sales ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 416,161 ÷ 61,039 = 6.82
2 Click competitor name to see calculations.
The annual financial data reveals notable trends in key performance areas over the observed periods.
- Net Sales
- Net sales demonstrate a substantial upward trajectory, growing from $274,515 million in 2020 to $416,161 million in the projected 2025 period. Although there is a slight dip in 2023 to $383,285 million from the previous year’s $394,328 million, the overall trend remains strongly positive, indicating robust revenue expansion.
- Property, Plant, and Equipment, Net
- The net value of property, plant, and equipment (including operating lease, right-of-use assets) also shows consistent growth. The asset base increased from $45,336 million in 2020 to an estimated $61,039 million in 2025. This growth reflects continued investments in fixed assets, supporting the company's operational capacity over time.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures efficiency in using fixed assets to generate sales, initially rises from 6.06 in 2020 to a peak of 7.51 in 2022. Following this peak, the ratio decreases gradually to 6.82 in 2025. This suggests a slight decline in asset utilization efficiency after 2022, potentially due to the accelerated asset base growth outpacing sales increases or changes in operational dynamics.
In summary, the data reflects strong revenue growth alongside increasing investments in fixed assets. Although asset turnover efficiency showed improvement early in the period, some moderation is observed in recent years. The company appears to be balancing expansion in asset capacity with efforts to maintain sales growth, which may warrant further monitoring to optimize asset utilization going forward.
Total Asset Turnover
Apple Inc., total asset turnover calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 416,161) | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | |
| Total assets | 359,241) | 364,980) | 352,583) | 352,755) | 351,002) | 323,888) | |
| Long-term Activity Ratio | |||||||
| Total asset turnover1 | 1.16 | 1.07 | 1.09 | 1.12 | 1.04 | 0.85 | |
| Benchmarks | |||||||
| Total Asset Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 0.50 | 0.59 | 0.65 | 0.51 | 0.49 | |
| Cisco Systems Inc. | 0.46 | 0.43 | 0.56 | 0.55 | 0.51 | 0.52 | |
| Dell Technologies Inc. | 1.20 | 1.08 | 1.14 | 1.09 | 0.76 | 0.78 | |
| Super Micro Computer Inc. | 1.57 | 1.53 | 1.94 | 1.62 | 1.59 | 1.74 | |
| Total Asset Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 0.93 | 1.00 | 1.01 | 0.89 | 0.77 | |
| Total Asset Turnover, Industry | |||||||
| Information Technology | — | 0.58 | 0.61 | 0.65 | 0.62 | 0.58 | |
Based on: 10-K (reporting date: 2025-09-27), 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).
1 2025 Calculation
Total asset turnover = Net sales ÷ Total assets
= 416,161 ÷ 359,241 = 1.16
2 Click competitor name to see calculations.
- Net Sales
- Net sales demonstrated a generally increasing trend over the observed periods, starting from 274,515 million US dollars in 2020 and rising to 416,161 million US dollars by 2025. There was a consistent upward trajectory with a notable increase between 2020 and 2021, after which sales continued to rise, albeit with a slight dip in 2023. The overall growth indicates strong revenue expansion over the years.
- Total Assets
- Total assets showed moderate growth from 323,888 million US dollars in 2020 to a peak of 364,980 million in 2024 before a slight decline to 359,241 million in 2025. The asset base remained relatively stable with incremental increases over time, reflecting a steady investment in resources or asset accumulation.
- Total Asset Turnover
- The total asset turnover ratio improved from 0.85 in 2020 to 1.16 by 2025, illustrating enhanced efficiency in utilizing assets to generate sales. Despite minor fluctuations, the ratio indicates a positive trend towards better asset utilization, peaking in 2025 at its highest recorded value.
- Overall Analysis
- The combination of increasing net sales and a relatively stable asset base alongside improving asset turnover suggests enhanced operational performance. The company has managed to generate higher sales without a proportionate increase in assets, signaling improved productivity and potentially effective management of asset resources.
Equity Turnover
Apple Inc., equity turnover calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net sales | 416,161) | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | |
| Shareholders’ equity | 73,733) | 56,950) | 62,146) | 50,672) | 63,090) | 65,339) | |
| Long-term Activity Ratio | |||||||
| Equity turnover1 | 5.64 | 6.87 | 6.17 | 7.78 | 5.80 | 4.20 | |
| Benchmarks | |||||||
| Equity Turnover, Competitors2 | |||||||
| Arista Networks Inc. | — | 0.70 | 0.81 | 0.90 | 0.74 | 0.70 | |
| Cisco Systems Inc. | 1.21 | 1.18 | 1.29 | 1.30 | 1.21 | 1.30 | |
| Dell Technologies Inc. | — | — | — | — | 38.01 | — | |
| Super Micro Computer Inc. | 3.49 | 2.77 | 3.61 | 3.64 | 3.25 | 3.13 | |
| Equity Turnover, Sector | |||||||
| Technology Hardware & Equipment | — | 4.81 | 4.94 | 5.86 | 4.61 | 3.97 | |
| Equity Turnover, Industry | |||||||
| Information Technology | — | 1.42 | 1.57 | 1.74 | 1.79 | 1.81 | |
Based on: 10-K (reporting date: 2025-09-27), 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).
1 2025 Calculation
Equity turnover = Net sales ÷ Shareholders’ equity
= 416,161 ÷ 73,733 = 5.64
2 Click competitor name to see calculations.
The annual financial data reveals several key trends concerning net sales, shareholders’ equity, and equity turnover ratios over the examined periods.
- Net Sales
- Net sales demonstrate a general upward trajectory over the years analyzed. Beginning at approximately $274.5 billion, net sales increased significantly to around $365.8 billion by the following year, evidencing strong growth. The upward trend continued, reaching approximately $416.2 billion by the most recent year. However, there was a slight decline in the penultimate period, where sales decreased from roughly $394.3 billion to $383.3 billion before rebounding again. This pattern suggests overall growth with some variability likely due to market or operational factors.
- Shareholders’ Equity
- Shareholders’ equity exhibits more fluctuation compared to net sales, with a notable decline from approximately $65.3 billion to $50.7 billion over three years. This decrease may indicate increased liabilities, share buybacks, or other factors reducing equity. After this dip, equity recovered somewhat to nearly $73.7 billion in the most recent period, suggesting a possible restructuring or improved profitability returning to strengthen balance sheet value. The volatility in equity suggests strategic financial management adjustments during the timeframe.
- Equity Turnover
- The equity turnover ratio, which measures the efficiency of equity utilization to generate sales, showed variability across the periods. Starting at 4.2, it increased to a peak of 7.78, indicating improved efficiency in leveraging equity to produce revenues. Subsequently, the ratio declined to 5.64 in the most recent year after fluctuating through intermediate values. This decline might reflect changes in operational efficiency, capital structure, or shifts in sales relative to equity levels. Despite the decrease, the ratio remains higher than the initial period, suggesting better than earlier equity productivity.
In summary, net sales trend upward with occasional minor downturns, shareholders’ equity reflects periods of both decline and recovery, and equity turnover indicates an overall improvement in capital utilization efficiency despite some recent reductions. These observations highlight dynamic financial performance with areas of strength alongside periods of adjustment within the company’s fiscal management.