Apple Inc.
Supplier Financial Health Report
Overview
June 2024
USA
Incorporated Country
161,000
Number of Employees
A+
Credit Rating
31
Count of Investments
Five-Year Financial Trend Analysis for Apple Inc.
CONSTANT
Credit Trend
52.16%
Total Balance Sheet Growth Rate
4.88%
Total Debt Growth Rate
Apple's creditworthiness is also noteworthy, with a high credit rating of A+ and a credit score of 98, indicating excellent creditworthiness and a strong financial position. The credit trend has remained constant, which is a favorable sign, as it suggests financial stability.
The company has undergone seven funding rounds, raising a total of $11.70 billion. With 31 investments, Apple has shown a willingness to invest in various opportunities, which could contribute to its growth. The number of exits is 15, suggesting a more active approach to investments and exits.
Apple's balance sheet shows a significant increase, rising from $231.84 billion in 2014 to $352.76 billion in 2022, representing a 52.16% change. The cash trend has also shown a substantial increase, rising from $13.84 billion in 2014 to $23.65 billion in 2022, representing a 70.80% change. However, the short-term investments trend has shown a decrease, dropping from $40.39 billion in 2018 to $24.66 billion in 2022, representing a 38.95% change.
Total debt and liabilities have also increased, rising from $114.48 billion in 2018 to $120.07 billion in 2022, representing a 4.88% change and $5.59 billion, respectively. In contrast, stockholders equity has decreased from $107.15 billion in 2018 to $50.67 billion in 2022, representing a 52.71% change.
Net income and EBITDA have also shown significant growth, rising from $39.51 billion in 2014 to $99.8 billion in 2022, representing a 152.60% change for net income and $87.05 billion in 2018 to $133.14 billion in 2022, representing a 52.95% change for EBITDA. Net operating cash flow and free cash flow have also shown substantial growth, rising from $59.71 billion in 2014 to $122.15 billion in 2022, representing a 104.56% change for net operating cash flow and $64.12 billion in 2018 to $111.44 billion in 2022, representing a 73.80% change for free cash flow.
Apple's operating cash flow per share has also shown a significant increase, rising from $3.87 in 2018 to $7.48 in 2022, representing a 93.25% change. The company's foreign revenue is also diversified, with China being the largest market, contributing 17.85% of Apple's revenue in 2022.
In conclusion, Apple Inc.'s financial health is robust, with substantial revenue growth, excellent creditworthiness, and strong financial position. The company's willingness to invest and its diversified revenue streams position it well for continued growth in the Consumer Electronics, Hardware, Mobile Devices, Operating Systems, and Wearables industries.
Financial Health Risk Assessment for Apple Inc.
LOW
Credit Risk
LOW
Bankruptcy Risk
MEDIUM
Financial Health Risk
Apple's creditworthiness is also noteworthy, with a high credit rating of A+ and a credit score of 98, indicating an excellent creditworthiness and a strong financial position. The company has undergone seven funding rounds, raising a total of $11.70 billion, and has shown a willingness to invest in various opportunities, which could contribute to its growth.
However, Apple's balance sheet shows a significant increase, rising from $231.84 billion in 2014 to $352.76 billion in 2022, representing a 52.16% change. The cash trend has also shown a substantial increase, rising from $13.84 billion in 2014 to $23.65 billion in 2022, representing a 70.80% change. However, the short-term investments trend has shown a decrease, dropping from $40.39 billion in 2018 to $24.66 billion in 2022, representing a 38.95% change. Total debt and liabilities have also increased, rising from $114.48 billion in 2018 to $120.07 billion in 2022, representing a 4.88% change. In contrast, stockholders equity has decreased from $107.15 billion in 2018 to $50.67 billion in 2022, representing a 52.71% change.
Net income and EBITDA have also shown significant growth, rising from $39.51 billion in 2014 to $99.8 billion in 2022, representing a 152.60% change for net income and $87.05 billion in 2018 to $133.14 billion in 2022, representing a 52.95% change for EBITDA. Net operating cash flow and free cash flow have also shown substantial growth, rising from $59.71 billion in 2014 to $122.15 billion in 2022, representing a 104.56% change for net operating cash flow and $64.12 billion in 2018 to $111.44 billion in 2022, representing a 73.80% change for free cash flow.
Apple's operating cash flow per share has also shown a significant increase, rising from $3.87 in 2018 to $7.48 in 2022, representing a 93.25% change. The company's foreign revenue is also diversified, with China being the largest market, contributing 17.85% of Apple's revenue in 2022.
However, there are areas of concern that merit further investigation. The company's current ratio of 0.88 suggests a modest ability to meet its short-term obligations, which is below the industry average. Although Apple's significant cash reserves and strong brand positioning provide some comfort, this ratio is worth monitoring. Another concern is Apple's debt-to-equity ratio of 5.96, which is quite high, indicating that a significant portion of its assets are financed through debt. This could increase financial risk if interest rates rise or if Apple experiences a downturn in sales.
Additionally, while Apple's profitability ratios are solid, there is room for improvement in its cost structure, as indicated by its gross profit margin of 0.43 and net profit margin of 0.25. These ratios are in line with industry averages but could be higher, suggesting that Apple could be more efficient in using its resources to generate profits.
Lastly, although Apple's Altman Z-Score of 5.79 is well above the threshold for a safe rating, indicating a low probability of bankruptcy, it is important to note that this score is based on historical financial data. Economic downturns or unexpected events could impact Apple's financial health in the future. Therefore, it is crucial for the company to continue managing its costs, debt levels, and liquidity carefully to maintain its financial health and continue its growth trajectory.
List of UEIs for Apple Inc.
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