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Apple Interest Coverage

: 43.38 (As of Mar. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Apple's Operating Income for the three months ended in Mar. 2022 was $29,979 Mil. Apple's Interest Expense for the three months ended in Mar. 2022 was $-691 Mil. Apple's interest coverage for the quarter that ended in Mar. 2022 was 43.38. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Apple's Interest Coverage or its related term are showing as below:

AAPL' s Interest Coverage Range Over the Past 10 Years
Min: 17.88   Med: 41.21   Max: No Debt
Current: 43.86


AAPL's Interest Coverage is ranked better than
64.13% of 1670 companies
in the Hardware industry
Industry Median: 21.89 vs AAPL: 43.86

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Apple Interest Coverage Historical Data

The historical data trend for Apple's Interest Coverage 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 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 26.41 21.88 17.88 23.07 41.19

Apple Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
Interest Coverage 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 41.05 36.28 35.40 59.78 43.38

Competitive Comparison

For the Consumer Electronics subindustry, Apple's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Hardware industry and Technology sector, Apple's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Apple's Interest Coverage falls into.



Apple Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Apple's Interest Coverage for the fiscal year that ended in Sep. 2021 is calculated as

Here, for the fiscal year that ended in Sep. 2021, Apple's Interest Expense was $-2,645 Mil. Its Operating Income was $108,949 Mil. And its Long-Term Debt & Capital Lease Obligation was $109,106 Mil.

Interest Coverage=-1* Operating Income (A: Sep. 2021 )/Interest Expense (A: Sep. 2021 )
=-1*108949/-2645
=41.19

Apple's Interest Coverage for the quarter that ended in Mar. 2022 is calculated as

Here, for the three months ended in Mar. 2022, Apple's Interest Expense was $-691 Mil. Its Operating Income was $29,979 Mil. And its Long-Term Debt & Capital Lease Obligation was $103,323 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2022 )/Interest Expense (Q: Mar. 2022 )
=-1*29979/-691
=43.38

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Apple  (NAS:AAPL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Apple Interest Coverage Related Terms

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


Apple Business Description

Apple logo
Industry
Technology » Hardware NAICS : 334220 SIC : 3571
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), AirPods, and TV boxes (Apple TV), among others. The iPhone makes up the majority 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 Card, and Apple Pay, among others. Apple's products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software 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
Kondo Chris officer: Principal Accounting Officer 1 INFINITE LOOP CUPERTINO CA 95014
Maestri Luca officer: Senior Vice President, CFO 1 INFINITE LOOP CUPERTINO CA 95014
Adams Katherine L. officer: SVP, GC and Secretary APPLE INC. 1 INFINITE LOOP CUPERTINO CA 95014
Williams Jeffrey E officer: COO ONE INFINITE LOOP CUPERTINO CA 95014
Cook Timothy D director, officer: Chief Executive Officer C/O APPLE INC ONE INFINITE LOOP CUPERTINO CA 95014
Jung Andrea director C/O APPLE INC ONE APPLE PARK WAY CUPERTINO CA 95014
Wagner Susan director C/O BLACKROCK, INC. 40 EAST 52ND STREET NEW YORK NY 10022
Bell James A director C/O THE DOW CHEMICAL COMPANY 2211 H.H. DOW WAY MIDLAND MI 48674
Levinson Arthur D director C/O GENENTECH INC 1 DNA WAY MS 49 SOUTH SAN FRANCISCO CA 94080-4990
Sugar Ronald D director 10877 WILSHIRE BLVD. SUITE 1650 LOS ANGELES CA 900274
Gore Albert Jr director C/O APPLE INC 1 INFINITE LOOP CUPERTINO CA 95014
Iger Robert A director C/O WALT DISNEY CO 500 S BUENA VISTA STREET BURBANK CA 91521-1062
Ahrendts Angela J officer: Senior Vice President 1 INFINITE LOOP CUPERTINO CA 95014
Srouji Johny officer: Senior Vice President 1 INFINITE LOOP CUPERTINO CA 95014
Federighi Craig officer: Senior Vice President 807 11TH AVENUE SUNNYVALE CA 94089

Apple Headlines

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