Let's break down Apple's lastest 2024 annual financial report and look behind the numbers to see if their business is profitable, are there major trends and restructuring and if they experience hickups and challenges. The numbers will tell us what really is going on this company.

As this is one of the biggest companies in the S&P 500 and Nasdaq, how it is performaing really matters: not only if you own shares, but also with respect to the economy. Knowing this helps spotting trends in the sector and influences the economic and financial triggers that move index funds.
-------------------
MY NOTES
Key information presented in Apple Inc.'s Annual Report on Form 10-K for the fiscal year ended September 28, 2024.

Business Operations
Apple categorises its products and services into five reportable operating segments: Americas, Europe, Greater China, Japan, and Rest of Asia Pacific. The company's primary business is the design, manufacture, and marketing of technology products and related services. These products include:
● Smartphones
● Personal computers
● Tablets
● Wearables
● Accessories

Financial Highlights
Apple recorded total net sales of $391,035 million for the twelve months ended September 28, 2024. This revenue was generated across its five operating segments:
● Americas: $167,045 million
● Europe: $101,328 million
● Greater China: $66,952 million
● Japan: $25,052 million
● Rest of Asia Pacific: $30,658 million

For the three months ended September 28, 2024, Apple reported basic earnings per share of $0.97 and diluted earnings per share of $0.97. For the twelve months ended September 28, 2024, the company reported basic earnings per share of $6.11 and diluted earnings per share of $6.08.
As of September 28, 2024, Apple had a total of 15,116,786 shares of common stock issued and outstanding.

Significant Accounting Policies
The consolidated financial statements of Apple Inc. include the accounts of the company and its wholly-owned subsidiaries. The preparation of these financial statements is in accordance with Generally Accepted Accounting Principles (GAAP) and requires management to make estimates.
Key accounting policies include:
● Revenue Recognition: Apple allocates revenue to distinct performance obligations based on their relative stand-alone selling prices. When observable prices aren't available, Apple uses its best estimates to determine the selling prices, considering factors like prices for similar offerings, market trends, product-specific business objectives, and estimated costs.
● Leases: As of September 28, 2024, Apple had fixed payment obligations of $849 million under leases, primarily for corporate facilities and retail space.
● Debt: Apple utilises a commercial paper program for short-term borrowing, with maturities generally under nine months.
● Share Repurchase Program: Apple has an authorised share repurchase program. During 2024, Apple repurchased 499 million shares of its common stock for $95 billion. The program doesn't obligate Apple to acquire a minimum number of shares.

свернуть