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Apple (AAPL) Financial Strength : 7 (As of Mar. 2024)


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What is Apple Financial Strength?

Apple has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Apple's interest coverage with the available data. Apple's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.29. As of today, Apple's Altman Z-Score is 9.91.


Competitive Comparison of Apple's Financial Strength

For the Consumer Electronics subindustry, Apple's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Hardware Industry

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

* The bar in red indicates where Apple's Financial Strength falls into.



Apple Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Apple's Interest Expense for the months ended in Mar. 2024 was $0 Mil. Its Operating Income for the months ended in Mar. 2024 was $27,900 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $91,831 Mil.

Apple's Interest Coverage for the quarter that ended in Mar. 2024 is

GuruFocus does not calculate Apple's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Apple's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(12759 + 91831) / 363012
=0.29

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Apple has a Z-score of 9.91, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 9.91 is strong.

* 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.


Apple  (NAS:AAPL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Apple has the Financial Strength Rank of 7.


Apple Financial Strength Related Terms

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


Apple (AAPL) Business Description

Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple's iPhone makes up a majority of the firm sales, and Apple's other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple's sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.
Executives
Chris Kondo officer: Principal Accounting Officer 1 INFINITE LOOP, CUPERTINO CA 95014
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
Jeffrey E Williams officer: COO ONE INFINITE LOOP, CUPERTINO CA 95014
Deirdre O'brien officer: Senior Vice President ONE APPLE PARK WAY, CUPERTINO CA 95014
Timothy D Cook director, officer: Chief Executive Officer C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Arthur D Levinson director C/O GENENTECH INC, 1 DNA WAY MS 49, SOUTH SAN FRANCISCO CA 94080-4990
Alex Gorsky director JOHNSON & JOHNSON, ONE JOHNSON & JOHNSON PLAZA, NEW BRUNSWICK NJ 08933
Monica C Lozano director
Angela J Ahrendts officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Johny Srouji officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Craig Federighi officer: Senior Vice President 807 11TH AVENUE, SUNNYVALE CA 94089
Daniel J. Riccio officer: Senior Vice President 1 INFINITE LOOP, CUPERTINO CA 95014
Philip W Schiller officer: Senior Vice President C/O APPLE INC, ONE INFINITE LOOP, CUPERTINO CA 95014
Susan Wagner director C/O BLACKROCK, INC., 40 EAST 52ND STREET, NEW YORK NY 10022

Apple (AAPL) Headlines

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