Apple (BUE:AAPL) Interest Coverage

: N/A (As of Dec. 2023)

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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 by its Interest Expense. Apple's Operating Income for the three months ended in Dec. 2023 was ARS14,574,653 Mil. Apple's Interest Expense for the three months ended in Dec. 2023 was ARS0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Apple's Interest Coverage or its related term are showing as below:

BUE:AAPL' s Interest Coverage Range Over the Past 10 Years
Min: 17.88 Med: 34.91 Max: 136.73
Current: 40.5

BUE:AAPL's Interest Coverage is ranked better than
70.46% of 1591 companies
in the Hardware industry
Industry Median: 12.78 vs BUE:AAPL: 40.50

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

Apple Interest Coverage Historical Data

The historical data trend for Apple's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Apple Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

17.88

23.07

41.19

40.75

29.06

Apple Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																35.91	30.45	23.04	26.92	N/A

Competitive Comparison

For the Consumer Electronics subindustry, Apple's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

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

* The bar in red indicates where Apple's Interest Coverage falls into.

Apple Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

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

Apple's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Apple's Interest Expense was ARS-1,376,353 Mil. Its Operating Income was ARS39,999,636 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS33,343,587 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	39999636.052	/	-1376353.388
	=	29.06

Apple's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Apple's Interest Expense was ARS0 Mil. Its Operating Income was ARS14,574,653 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS34,326,768 Mil.

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

The higher the ratio, the stronger the company's Financial Strength is.

Apple (BUE:AAPL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Apple Interest Coverage Related Terms

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Apple (BUE:AAPL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Apple Inc (BUE:AAPL) » Definitions » Interest Coverage

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Traded in Other Exchanges

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Address

One Apple Park Way, Cupertino, CA, USA, 95014

Website

https://www.apple.com

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.