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Apple Free Cash Flow

: $63,970 Mil (TTM As of Dec. 2019)
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Apple's total free cash flow for the months ended in Dec. 2019 was $28,409 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Dec. 2019 was $63,970 Mil.

Apple's Free Cash Flow per Share for the months ended in Dec. 2019 was $6.38. Its free cash flow per share for the trailing twelve months (TTM) ended in Dec. 2019 was $14.13.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Apple was 11.10% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 9.20% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 7.10% per year. During the past 10 years, the average Free Cash Flow per Share Growth Rate was 21.30% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, Apple's highest 3-Year average Free Cash Flow per Share Growth Rate was 115.40% per year. The lowest was 0.00% per year. And the median was 0.00% per year.


Apple Free Cash Flow Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Apple Annual Data
Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19
Free Cash Flow Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 69,778.00 53,497.00 51,774.00 64,121.00 58,896.00

Apple Quarterly Data
Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19
Free Cash Flow 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 23,335.00 8,792.00 9,636.00 17,133.00 28,409.00

Apple Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company’s earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year’s Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Note: GuruFocus does not calculate Free Cash Flow when Capital Expenditure is 0.

Apple's Free Cash Flow for the fiscal year that ended in Sep. 2019 is calculated as

Free Cash Flow (A: Sep. 2019 )=Cash Flow from Operations+Capital Expenditure
=69391+-10495
=58,896

Apple's Free Cash Flow for the quarter that ended in Dec. 2019 is calculated as

Free Cash Flow (Q: Dec. 2019 )=Cash Flow from Operations+Capital Expenditure
=30516+-2107
=28,409

Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2019 was 8792 (Mar. 2019 ) + 9636 (Jun. 2019 ) + 17133 (Sep. 2019 ) + 28409 (Dec. 2019 ) = $63,970 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Apple  (NAS:AAPL) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Dec19, Apple's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Dec19)=Normalized Free Cash Flow/Price+5-Year EBITDA Growth Rate
=12.05809524/293.65+0.0761
=11.72 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.


Apple Free Cash Flow Related Terms


Apple Free Cash Flow Headlines

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