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Apple (NAS:AAPL) Return-on-Tangible-Equity

: 223.45% (As of Dec. 2022)
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Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Apple's annualized net income for the quarter that ended in Dec. 2022 was $119,992 Mil. Apple's average shareholder tangible equity for the quarter that ended in Dec. 2022 was $53,700 Mil. Therefore, Apple's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 was 223.45%.

The historical rank and industry rank for Apple's Return-on-Tangible-Equity or its related term are showing as below:

AAPL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 32.12   Med: 49.73   Max: 175.46
Current: 156.1

During the past 13 years, Apple's highest Return-on-Tangible-Equity was 175.46%. The lowest was 32.12%. And the median was 49.73%.

AAPL's Return-on-Tangible-Equity is ranked better than
97.02% of 2318 companies
in the Hardware industry
Industry Median: 7.74 vs AAPL: 156.10

Apple Return-on-Tangible-Equity Historical Data

The historical data trend for Apple's Return-on-Tangible-Equity 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 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Return-on-Tangible-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 49.36 55.92 73.69 147.44 175.46

Apple Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Return-on-Tangible-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 205.18 143.60 123.93 152.39 223.45

Competitive Comparison

For the Consumer Electronics subindustry, Apple's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity Distribution

For the Hardware industry and Technology sector, Apple's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Apple's Return-on-Tangible-Equity falls in comparison to its industry or sector. The grey bar indicates the Return-on-Tangible-Equity's extreme value range as defined by GuruFocus.



Apple Return-on-Tangible-Equity Calculation

Apple's annualized Return-on-Tangible-Equity for the fiscal year that ended in Sep. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Sep. 2022 )  (A: Sep. 2021 )(A: Sep. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Sep. 2022 )  (A: Sep. 2021 )(A: Sep. 2022 )
=99803/( (63090+50672 )/ 2 )
=99803/56881
=175.46 %

Apple's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2022 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2022 )  (Q: Sep. 2022 )(Q: Dec. 2022 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2022 )  (Q: Sep. 2022 )(Q: Dec. 2022 )
=119992/( (50672+56727)/ 2 )
=119992/53699.5
=223.45 %

* 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2022) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Apple  (NAS:AAPL) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.


Apple Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of Apple's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Apple (NAS:AAPL) Business Description

Apple logo
Industry
Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and AirPods. The iPhone makes up most of Apple's total revenue. 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. The company generates roughly 40% of its revenue from the Americas, with the remainder earned internationally.
Executives
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Monica C Lozano director
Deirdre O'brien officer: Senior Vice President ONE APPLE PARK WAY, CUPERTINO CA 95014
Robert A Iger director C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1062
Andrea Jung director C/O APPLE INC, ONE APPLE PARK WAY, CUPERTINO CA 95014
Susan Wagner director C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022
James A Bell director C/O THE DOW CHEMICAL COMPANY, 2211 H.H. DOW WAY, MIDLAND MI 48674
Albert Jr Gore director C/O APPLE INC, 1 INFINITE LOOP, CUPERTINO CA 95014
Ronald D Sugar director 10877 WILSHIRE BLVD., SUITE 1650, LOS ANGELES CA 900274
Katherine L. Adams officer: SVP, General Counsel APPLE INC., 1 INFINITE LOOP, CUPERTINO CA 95014
Luca Maestri officer: Senior Vice President, CFO 1 INFINITE LOOP, CUPERTINO CA 95014
Angela J Ahrendts officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Jeffrey E Williams officer: COO ONE INFINITE LOOP, CUPERTINO CA 95014
Philip W Schiller officer: Senior Vice President C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Eduardo H Cue officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014

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