Three-year performance
2019 → 2021Scale and earnings moved decisively higher
Net sales Net incomeRight column: net margin
Sales CAGR18.6%
Net income CAGR30.9%
FCF CAGR32.4%
AAPLFY 2021USD millions
Profitability accelerated; liquidity tightened.
Sales jumped 33.3% and net margin reached 25.9%, while Apple returned $100.4B to shareholders and ended with a 1.07× current ratio.
Fiscal year ended Sep 25, 2021
Selected-year pulse2021
Net sales$365.8B33.3% YoY
Net income$94.68B64.9% YoY
Textbook FCF$78.49Bafter capex + dividends
Cash returned to shareholders$100.4B96.5% of operating cash flow
Current ratio1.07×
Liabilities / assets82.0%
Net profit margin25.9%
Asset turnover1.08×
Capital allocation
Buybacks dominated cash deployment
Across 2019–2021, Apple spent $225.2B on repurchases, versus $42.7B on dividends and $28.9B on capex.
2019$107.7B
2020$112.5B
2021$133.4B
Repurchases Dividends R&D expense Capex
R&D is expensed under U.S. GAAP and is shown as a strategic operating investment, not as a cash-flow statement investing activity.
Ratio intelligence
Four lenses on financial condition
Select a category, then open any card to see the formula and interpretation limits.
LiquidityFormulaCurrent ratio
1.07×-0.47× vs 2019Short-term balance-sheet coverage.
CalculationCurrent assets ÷ current liabilities
LiquidityFormulaQuick ratio
0.71×-0.46× vs 2019Coverage without relying on inventory or other current assets.
Calculation(Cash + current marketable securities + net receivables) ÷ current liabilities
Excludes Apple’s non-current marketable securities.
SolvencyFormulaLiabilities to assets
82.0%+8.76 pts vs 2019Share of reported assets financed by liabilities.
CalculationTotal liabilities ÷ total assets
SolvencyFormulaLiabilities to equity
4.56×+1.82× vs 2019Book leverage relative to shareholders’ equity.
CalculationTotal liabilities ÷ shareholders’ equity
Repurchases reduce book equity and mechanically lift this ratio.
ProfitabilityFormulaNet profit margin
25.9%+4.64 pts vs 2019Net earnings retained from each sales dollar.
CalculationNet income ÷ net sales
ProfitabilityFormulaGross margin
41.8%+3.96 pts vs 2019Pricing and mix after product and service costs.
CalculationGross margin dollars ÷ net sales
ProfitabilityFormulaReturn on assets
28.1%+12.37 pts vs 2019Profit generated per dollar of average assets.
CalculationNet income ÷ average total assets
ProfitabilityFormulaReturn on equity
147.4%+91.53 pts vs 2019Accounting return on the average equity base.
CalculationNet income ÷ average shareholders’ equity
The 2021 result is amplified by a smaller buyback-reduced denominator.
EfficiencyFormulaAsset turnover
1.08×+0.35× vs 2019Sales generated per dollar of average assets.
CalculationNet sales ÷ average total assets
EfficiencyFormulaInventory turnover
40.03×-0.10× vs 2019How many times average inventory turns through cost of sales.
CalculationCost of sales ÷ average inventory
EfficiencyFormulaReceivables turnover
17.26×+5.97× vs 2019Collection efficiency using disclosed net sales as the numerator.
CalculationNet sales ÷ average net accounts receivable
A proxy: Apple does not separately disclose net credit sales.
ProfitabilityFormulaFree cash flow
$78.49B+75.3% vs 2019Cash left after sustaining capital investment and the current dividend.
CalculationOperating cash flow − capital expenditures − cash dividends
This is the Weygandt textbook definition; other sources may omit dividends.
Preliminary interpretation
Board viewStrong economics, deliberate balance-sheet compression
Earnings quality strengthened
Revenue grew 40.6% across the period, net margin expanded 4.6 points, and textbook-defined free cash flow rose from $44.8B to $78.5B. The 2021 acceleration was both top-line and margin-led.
Signal: favorableLiquidity ratios need context
The current ratio fell from 1.54× to 1.07× and the quick ratio to 0.71×. That looks tighter, but Apple also generated $104.0B of operating cash in 2021 and held substantial non-current marketable securities outside the quick-ratio numerator.
Signal: monitor, not distressBuybacks reshape the ratios
Apple repurchased $225.2B of shares over three years. This reduced book equity, lifting liabilities-to-equity and ROE. The 147.4% 2021 ROE should therefore be read alongside capital returns, not as a pure operating-performance measure.
Signal: denominator effectAI integrity checkpoints
Five places where an unqualified dashboard could mislead
These flags make the analysis auditable and provide a bridge to the assignment’s Excel validation and AI integrity review.
- 01
FCF definitions vary. This dashboard follows Weygandt: CFO minus capex minus dividends.
- 02
ROE is denominator-sensitive. Repurchases materially reduced average book equity.
- 03
Credit sales are not disclosed. Receivables turnover uses total net sales as a transparent proxy.
- 04
Balance sheets are point-in-time. Turnover and return ratios use average beginning and ending balances.
- 05
Period comparability is imperfect. Pandemic demand, launch timing, and the 2021 product cycle affect trends.
Sources and calculation trail
Source mappedFrom filed statements to dashboard
Figures below are in USD millions, except EPS. The Appendix A specimen statements were reconciled to Apple’s EDGAR filings.
TextbookWeygandt, Kimmel & Mitchell (2023)Chapter 13 · Appendix A: Apple Inc.EDGARApple 2021 Form 10-K2019–2021 income, cash flow and notes; 2020–2021 balance sheetsEDGARApple 2019 Form 10-K2019 and 2018 opening balances used in average denominators
View source financial statement inputs19 line items · 3 fiscal years
| Financial statement input | 2019 | 2020 | 2021 |
|---|---|---|---|
| Net sales | 260,174 | 274,515 | 365,817 |
| Cost of sales | 161,782 | 169,559 | 212,981 |
| Gross margin | 98,392 | 104,956 | 152,836 |
| Net income | 55,256 | 57,411 | 94,680 |
| Cash and cash equivalents | 48,844 | 38,016 | 34,940 |
| Current marketable securities | 51,713 | 52,927 | 27,699 |
| Accounts receivable, net | 22,926 | 16,120 | 26,278 |
| Inventories | 4,106 | 4,061 | 6,580 |
| Total current assets | 162,819 | 143,713 | 134,836 |
| Total assets | 338,516 | 323,888 | 351,002 |
| Total current liabilities | 105,718 | 105,392 | 125,481 |
| Total liabilities | 248,028 | 258,549 | 287,912 |
| Shareholders’ equity | 90,488 | 65,339 | 63,090 |
| Cash from operations | 69,391 | 80,674 | 104,038 |
| Capital expenditures | 10,495 | 7,309 | 11,085 |
| Cash dividends paid | 14,119 | 14,081 | 14,467 |
| Share repurchases | 66,897 | 72,358 | 85,971 |
| Business acquisitions, net | 624 | 1,524 | 33 |
| Research & development | 16,217 | 18,752 | 21,914 |
| Diluted EPS | $2.97 | $3.28 | $5.61 |
Average-balance calculations for 2019 also use the 2018 opening balances disclosed in Apple’s 2019 Form 10-K: total assets $365,725; equity $107,147; receivables $23,186; inventory $3,956.