Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Apple Inc., profitability ratios
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 |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apple Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apple Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apple Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apple Inc. ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Apple Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |
Gross Profit Margin
Apple Inc., gross profit margin calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 180,683) | 169,148) | 170,782) | 152,836) | 104,956) | 98,392) | |
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 46.21% | 44.13% | 43.31% | 41.78% | 38.23% | 37.82% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Arista Networks Inc. | — | 61.95% | 61.07% | 63.80% | 63.94% | 64.06% | |
| Cisco Systems Inc. | 64.73% | 62.73% | 62.55% | 64.02% | 64.26% | 62.94% | |
| Super Micro Computer Inc. | — | 18.01% | 15.40% | 15.03% | 15.76% | 14.16% | |
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).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Net sales
= 100 × 180,683 ÷ 391,035 = 46.21%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Apple Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024. |
Operating Profit Margin
Apple Inc., operating profit margin calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 123,216) | 114,301) | 119,437) | 108,949) | 66,288) | 63,930) | |
| Net sales | 391,035) | 383,285) | 394,328) | 365,817) | 274,515) | 260,174) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 31.51% | 29.82% | 30.29% | 29.78% | 24.15% | 24.57% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Arista Networks Inc. | — | 38.52% | 34.86% | 31.37% | 30.19% | 33.42% | |
| Cisco Systems Inc. | 22.64% | 26.37% | 27.09% | 25.76% | 27.63% | 27.39% | |
| Super Micro Computer Inc. | — | 10.68% | 6.45% | 3.48% | 2.57% | 2.78% | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 29.20% | 29.70% | 29.10% | 24.49% | 24.86% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 26.18% | 28.26% | 28.63% | 24.76% | 25.32% | |
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).
1 2024 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 123,216 ÷ 391,035 = 31.51%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Apple Inc. operating profit margin ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Net Profit Margin
Apple Inc., net profit margin calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Arista Networks Inc. | — | 35.62% | 30.87% | 28.52% | 27.38% | 35.67% | |
| Cisco Systems Inc. | 19.18% | 22.13% | 22.91% | 21.26% | 22.75% | 22.39% | |
| Super Micro Computer Inc. | — | 8.98% | 5.49% | 3.14% | 2.52% | 2.05% | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 24.78% | 24.87% | 25.16% | 21.05% | 21.32% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 22.02% | 23.86% | 25.49% | 21.22% | 22.17% | |
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).
1 2024 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 93,736 ÷ 391,035 = 23.97%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Apple Inc. net profit margin ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Return on Equity (ROE)
Apple Inc., ROE calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Arista Networks Inc. | — | 28.91% | 27.68% | 21.13% | 19.11% | 29.71% | |
| Cisco Systems Inc. | 22.70% | 28.44% | 29.70% | 25.66% | 29.57% | 34.62% | |
| Super Micro Computer Inc. | — | 32.45% | 20.00% | 10.20% | 7.91% | 7.64% | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | — | 97.10% | 117.05% | 97.06% | 64.42% | 53.02% | |
| ROE, Industry | |||||||
| Information Technology | — | 31.65% | 38.16% | 42.09% | 34.78% | 36.50% | |
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).
1 2024 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 93,736 ÷ 56,950 = 164.59%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Apple Inc. ROE deteriorated from 2022 to 2023 but then slightly improved from 2023 to 2024. |
Return on Assets (ROA)
Apple Inc., ROA calculation, comparison to benchmarks
| Sep 28, 2024 | Sep 30, 2023 | Sep 24, 2022 | Sep 25, 2021 | Sep 26, 2020 | Sep 28, 2019 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Arista Networks Inc. | — | 20.98% | 19.96% | 14.66% | 13.39% | 20.54% | |
| Cisco Systems Inc. | 8.29% | 12.38% | 12.57% | 10.86% | 11.82% | 11.88% | |
| Super Micro Computer Inc. | — | 17.42% | 8.90% | 4.99% | 4.39% | 4.27% | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | — | 24.00% | 24.80% | 23.27% | 16.30% | 15.34% | |
| ROA, Industry | |||||||
| Information Technology | — | 13.00% | 14.95% | 15.56% | 12.03% | 12.78% | |
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).
1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 93,736 ÷ 364,980 = 25.68%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Apple Inc. ROA deteriorated from 2022 to 2023 and from 2023 to 2024. |