Apple (NAS:AAPL) Asset Turnover

: 0.25 (As of Jun. 2023)

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Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Apple's Revenue for the three months ended in Jun. 2023 was $81,797 Mil. Apple's Total Assets for the quarter that ended in Jun. 2023 was $333,599 Mil. Therefore, Apple's Asset Turnover for the quarter that ended in Jun. 2023 was 0.25.

Asset Turnover is linked to ROE % through Du Pont Formula. Apple's annualized ROE % for the quarter that ended in Jun. 2023 was 129.91%. It is also linked to ROA % through Du Pont Formula. Apple's annualized ROA % for the quarter that ended in Jun. 2023 was 23.84%.

Apple Asset Turnover Historical Data

The historical data trend for Apple's Asset Turnover 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

Asset Turnover

0.72

0.74

0.83

1.08

1.12

Apple Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Asset Turnover																0.24	0.26	0.34	0.28	0.25

Competitive Comparison

For the Consumer Electronics subindustry, Apple's Asset Turnover, along with its competitors' market caps and Asset Turnover 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.

Annual Data Quarterly Data

Apple Asset Turnover Distribution

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

* The bar in red indicates where Apple's Asset Turnover falls in comparison to its industry or sector. The grey bar indicates the Asset Turnover's extreme value range as defined by GuruFocus.

Apple Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Apple's Asset Turnover for the fiscal year that ended in Sep. 2022 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Sep. 2022 )	/	( (Total Assets (A: Sep. 2021 )	+	Total Assets (A: Sep. 2022 ))	/ count )
=	394328	/	( (351002	+	352755)	/ 2 )
=	394328	/	351878.5
=	1.12

Apple's Asset Turnover for the quarter that ended in Jun. 2023 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Jun. 2023 )	/	( (Total Assets (Q: Mar. 2023 )	+	Total Assets (Q: Jun. 2023 ))	/ count )
=	81797	/	( (332160	+	335038)	/ 2 )
=	81797	/	333599
=	0.25

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Apple (NAS:AAPL) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Apple's annulized ROE % for the quarter that ended in Jun. 2023 is

	ROE %^**		(Q: Jun. 2023 )
=	Net Income	/	Total Stockholders Equity
=	79524	/	61216
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(79524 / 327188)	*	(327188 / 333599)	*	(333599/ 61216)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	24.31 %	*	0.9808	*	5.4495
=	ROA %	*	Equity Multiplier
=	23.84 %	*	5.4495
=	129.91 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Apple's annulized ROA % for the quarter that ended in Jun. 2023 is

	ROA %		(Q: Jun. 2023 )
=	Net Income	/	Total Assets
=	79524	/	333599
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(79524 / 327188)	*	(327188 / 333599)
=	Net Margin %	*	Asset Turnover
=	24.31 %	*	0.9808
=	23.84 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Apple Asset Turnover Related Terms

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Apple (NAS:AAPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Apple Inc (NAS:AAPL) » Definitions » Asset Turnover

Traded in Other Exchanges

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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