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Apple (NAS:AAPL) Net-Net Working Capital

: $-12.39 (As of Jun. 2023)
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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Apple's Net-Net Working Capital for the quarter that ended in Jun. 2023 was $-12.39.

The industry rank for Apple's Net-Net Working Capital or its related term are showing as below:

AAPL's Price-to-Net-Net-Working-Capital is not ranked *
in the Hardware industry.
Industry Median: 7.04
* Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.

Apple Net-Net Working Capital Historical Data

The historical data trend for Apple's Net-Net Working Capital 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
Net-Net Working Capital
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -9.09 -7.21 -9.04 -12.31 -14.44

Apple Quarterly Data
Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23
Net-Net Working Capital 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 -13.10 -14.44 -13.73 -12.53 -12.39
Competitive Comparison

For the Consumer Electronics subindustry, Apple's Net-Net Working Capital, along with its competitors' market caps and Net-Net Working Capital 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 Net-Net Working Capital Distribution

For the Hardware industry and Technology sector, Apple's Net-Net Working Capital distribution charts can be found below:

* The bar in red indicates where Apple's Net-Net Working Capital falls into.


Apple Net-Net Working Capital Calculation

Apple's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Sep. 2022 is calculated as

Net-Net Working Capital(A: Sep. 2022 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(48304+0.75 * 28184+0.5 * 4946-302083
-0-0)/15943.4
=-14.44

Apple's Net-Net Working Capital (NNWC) per share for the quarter that ended in Jun. 2023 is calculated as

Net-Net Working Capital(Q: Jun. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(62482+0.75 * 19549+0.5 * 7351-274764
-0-0)/15647.9
=-12.39

* 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 calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.

Apple  (NAS:AAPL) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.

Apple Net-Net Working Capital Related Terms

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Apple (NAS:AAPL) Business Description

Apple logo
Industry
GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Apple Inc (NAS:AAPL) » Definitions » Net-Net Working Capital
Comparable Companies
NAS:SONO NYSE:VZIO NAS:GPRO NAS:VUZI NAS:VOXX NAS:HEAR NAS:UEIC NYSE:ZEPP NAS:KOSS NAS:WLDS XKRX:005930 TSE:6758 HKSE:01810 TSE:6752 XKRX:066570 XKRX:003550 SZSE:002241 SHSE:603296 SZSE:300866 TSE:6753
Traded in Other Exchanges
AAPL:Peru AAPL:Mexico AAPL:Italy APCd:UK 0R2V:UK APC:Germany AAPL:Chile AAPL:Canada AAPL34:Brazil AAPL:Austria AAPL:Argentina
Address
One Apple Park Way, Cupertino, CA, USA, 95014
Website
https://www.apple.com
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.
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