Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Apple's annualizedNet Income for the quarter that ended in Sep. 2023 was $91,824 Mil. Apple's average total tangible assets for the quarter that ended in Sep. 2023 was $343,811 Mil. Therefore, Apple's annualized Return-on-Tangible-Asset for the quarter that ended in Sep. 2023 was 26.71%.
The historical rank and industry rank for Apple's Return-on-Tangible-Asset or its related term are showing as below:
AAPL'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 14.05 Med: 17.98 Max: 28.36
Current: 28.21
During the past 13 years, Apple's highest Return-on-Tangible-Asset was 28.36%. The lowest was 14.05%. And the median was 17.98%.
AAPL's Return-on-Tangible-Asset is ranked better than 99.19% of 2476
companies
in the Hardware industry
Industry Median: 2.50
vs AAPL: 28.21
Apple Return-on-Tangible-Asset Historical Data
The historical data trend for Apple's Return-on-Tangible-Asset can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Apple Annual Data
Trend
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
Return-on-Tangible-Asset
15.69
17.33
28.06
28.36
27.50
Apple Quarterly Data
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Return-on-Tangible-Asset
24.06
34.31
28.47
23.84
26.71
Competitive Comparison
For the Consumer Electronics subindustry, Apple's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Apple Return-on-Tangible-Asset Distribution
For the Hardware industry and Technology sector, Apple's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Apple's Return-on-Tangible-Asset falls into.
Apple Return-on-Tangible-Asset Calculation
Apple's annualized Return-on-Tangible-Asset for the fiscal year that ended in Sep. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Sep. 2023) net income data.
Apple (NAS:AAPL) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Apple Return-on-Tangible-Asset Related Terms
Thank you for viewing the detailed overview of Apple's Return-on-Tangible-Asset provided by GuruFocus.com. Please click on the following links to see related term pages.
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and AirPods, among others. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Fitness, Apple Card, and Apple Pay, among others. Apple's products include internally developed software and semiconductors, and the firm is well known for its integration of hardware, software, semiconductors, and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers.
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