Apple Inc.

Financial Modeling
Core Financial Statements
Income Statement
Balance Sheet
Cash Flows

Supporting Financial Modeling Schedules

Ratio Analysis
Revenue Built-up
Cost Sheet
Working Capital
Depreciation Schedule
Shareholder's Equity
Debt Schedule

Valuations
DCF Valuation

Note: This Excel model is intended solely for educational purposes and should not be used for any other purpose.

printed, or recorded for commercial use.

Disclaimer: The Apple Financial Model is only for educational purposes.

We do not recommend any sell or buy recommendation to investors.
t be used for any other purpose.
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Revenue
Products 213883 220747
Services 46291 53768
Total net sales 260174 274515

Cost of Sales:
Products 144996 151286
Services 16786 18273
Total cost of sales 161782 169559
Gross margin 98392 104956

Operating expenses:
Research and development 16217 18752
Selling, general and administrative 18245 19916
Total operating expenses 34462 38668

Operating income 63930 66288

Other income/(expense), net 1807 803
Income before provision for income taxes 65737 67091
Provision for income taxes 10481 9680
Tax rate 0 0
Net income 55256 57411

Earnings per share:

Basic 3 3
Diluted 3 3

Shares used in computing earnings per share:

Basic 18471336 17352119
Diluted 18595651 17528214

EBITDA
Income from Operations (EBIT)
Add: Depreciation and Amortization
Add: Stock-based compensation
Adjusted EBITDA

Other Income/(Expense), Net

Interest and dividend income 4961 3763
Interest expense (3576) (2873)
Other income/(expense), net 422 (87)
Total other income/(expense), net 1807 803
storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

297392
68425
365817

192266
20715
212981
152836

21914
21973
43887

108949
258
109207
14527
0
94680

6
6

16701272
16864919

2843
(2645)
60
258
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Assets
Current Assets
Cash and cash equivalents 48844 38016
Marketable securities 51713 52927
Accounts receivable, net 22926 16120
Inventories 4106 4061
Vendor non-trade receivables 22878 21325
Other current assets 12352 11264
Total Current Assets 162819 143713

Non-current assets:
Marketable securities 105341 100887
Property, plant and equipment, net 37378 36766
Other non-current assets 32978 42522
Total Non-current Assets 175697 180175
Total Assets 338516 323888

Liabilities and Equity

Current liabilities:
Accounts payable 46236 42296
Other current liabilities 37720 42684
Deferred revenue 5522 6643
Commercial paper 5980 4996
Term debt 10260 8773
Total current liabilities 105718 105392

Non-current liabilities:
Term debt 91807 98667
Other non-current liabilities 50503 54490
Total non-current liabilities 142310 153157
Total liabilities 248028 258549

Shareholders’ equity:
Common stock 45174 50779
Retained earnings 45898 14966
Accumulated other comprehensive income/(loss) (584) (406)
Total shareholders’ equity 90488 65339

Total liabilities and shareholders’ equity 338516 323888

Check 0 0
storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

34940
27699
26278
6580
25228
14111
134836

127877
39440
48849
216166
351002

54763
47493
7612
6000
9613
125481

109106
53325
162431
287912

57365
5562
163
63090

351002

0 0 0 0 0 0
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Cash flows from operating activities
Net income 55256 57411
Adjustments:
Depreciation and amortization 12547 11056
Share-based compensation expense 6068 6829
Deferred income tax benefit (340) (215)
Other (652) (97)
Changes in operating assets and liabilities:
Accounts receivable, net 245 6917
Inventories (289) (127)
Vendor non-trade receivables 2931 1553
Other current and non-current assets 873 (9588)
Accounts payable (1923) (4062)
Deferred revenue (625) 2081
Other current and non-current liabilities (4700) 8916
(Increase) / Decrease in Working Capital
Cash generated by operating activities 69391 80674

Cash flows from investing activities

Purchases of marketable securities (39630) (114938)
Proceeds from maturities of marketable securities 40102 69918
Proceeds from sales of marketable securities 56988 50473
Payments for acquisition of property, plant and equipment (10495) (7309)
Payments made in connection with business acquisitions, net (624) (1524)
Purchases of non-marketable securities (1001) (210)
Proceeds from non-marketable securities 1634 92
Other (1078) (791)
Cash generated by/(used in) investing activities 45896 (4289)

Cash Flow available for Financing Activities

Proceeds from issuance of common stock 781 880
Payments for taxes related to net share settlement of equity
(2817) (3634)
awards
Payments for dividends and dividend equivalents (14119) (14081)
Repurchases of common stock (66897) (72358)
Proceeds from issuance of term debt, net 6963 16091
Repayments of term debt (8805) (12629)
Proceeds from/(Repayments of) commercial paper, net (5977) (963)
Other (105) (126)
Cash used in financing activities (90976) (86820)

Increase/(Decrease) in cash, cash equivalents and restricted

cash 24311 (10435)
Cash, cash equivalents and restricted cash, beginning balances 25913 50224
Cash, cash equivalents and restricted cash, ending balances 50224 39789
storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

94680

11284
7906
(4774)
(147)

(10125)
(2642)
(3903)
(8042)
12326
1676
5799

104038

(109558)
59023
47460
(11085)
(33)
(131)
387
(608)
(14545)

1105
(6556)
(14467)
(85971)
20393
(8750)
1022
(129)
(93353)

(3860) 0 0 0 0 0
39789
34940 0 0 0 0 0
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Ratio Analysis
Solvency Ratios
Current ratio 1.36
Cash ratio 0.86

Receivables turnover 14.06

Payables turnover 6.49
Inventory Turnover 41.75

Operating Efficiency
Total asset turnover 0.77
Equity turnover 2.88

Operating Profitability
Gross Profit Margin 0.38
Operating Profit Margin 0.24
Net Profit Margin 0.21

Return on total capital 0.35

ROE (Net Income / Common Equity) 0.88

ROE DuPont Analysis

Profit Margin 0.21
Asset Turnover 0.85
Financial Leverage 4.96
ROE 0.88

Financial Risk Ratios

Debt to equity ratio 1.51
 Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Net sales by category:
iPhone 142381 137781

Mac 25740 28622

iPad 21280 23724

Wearables, Home and Accessories 24482 30620

Services 46291 53768

Total Net Sales 260174 274515

storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

191973

35190

31862

38367

68425

365817
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) 2019 FY 2020

Revenue
Products
Services
Total Revenue

Cost of Sales:
Products
% Sales

Services
% Sales

Operating Expense:
Research and development
% Sales

Selling, general and administrative

% Sales
storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Net Sales
Cost of Sales

Accounts receivable, net of allowance

Inventories
Vendor non-trade receivables
Other current assets
Total Non Cash Current Assets

Accounts payable and accrued expenses

Other current liabilities
Total Current Liabilities

Net Working Capital

(Increase) / Decrease in Working Capital

Ratios & Assumptions

Accounts receivable, net of allowance

Inventories

Vendor non-trade receivables

Other current assets

% of sales

Accounts payable and accrued expenses

Other current liabilities

% of Sales
storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Net Sales
Capital Expenditures
Capital Expenditures as % of Net Sales

Beginning Net PP&E

Capital Expenditures
(Depreciation Expense)
(Asset Sales )
Ending Net PP&E

PPE (Break-up for 2021) Amount Useful Life

Land and buildings 20041 40
Machinery, equipment and internal-use software 78659 5
Leasehold improvements 11023 7
Total 109723

Total Capex
Breakup
Land Building
Machinery, equipment and internal-use software
Leasehold improvements

Land and Building- Straight Line Method

Useful Life 40
Land and buildings 20,041

Year Capex Useful Life

FY 2022 40
FY 2023 40
FY 2024 40
FY 2025 40
FY 2026 40
(a) Depreciation: Land And Building

Machinery, equipment and internal-use software - Straight Line Method

Useful Life 5
Machinery, equipment and internal-use software 78659

Year Capex Useful Life

FY 2022 5
FY 2023 5
FY 2024 5
FY 2025 5
FY 2026 5
(b) Depreciation: Machinery, equipment and internal-use software

Leasehold improvements - Straight Line Method

Useful Life 7
Leasehold improvements 11023
Depreciation Expense (existing)

Year Capex Useful Life

FY 2022 7
FY 2023 7
FY 2024 7
FY 2025 7
FY 2026 7
(c) Depreciation: Leasehold improvements

Total Depreciation (a+b+c)

storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Proportion of Assets

FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Common stock and additional paid-in capital:
Beginning balances 40201
Common stock issued 781 880
Common stock withheld related to net share settlement of equity a (2002) (2250)
Share-based compensation 6194 6975
Ending balances

Retained earnings:
Beginning balances 70400
Net income 55256 57411
Dividends and dividend equivalents declared (14129) (14087)
Common stock withheld related to net share settlement of equity a (1029) (1604)
Common stock repurchased (67101) (72516)
Cumulative effects of changes in accounting principles 2501 (136)
Ending balances

Accumulated other comprehensive income/(loss):

Beginning balances (3454)
Other comprehensive income/(loss) 2781 42
Cumulative effects of changes in accounting principles 89 136
Ending balances

Total shareholders’ equity, ending balances

Dividends and dividend equivalents declared per share or RSU 0.85 0.80
storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026

1105
(2627)
8108

94680
(14431)
(4151)
(85502)
0

569
0

0.85
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019 FY 2020
Cash Flow Available for Financing Activities
Proceeds from/ (Repurchase of) Equity
+ Beginning Cash Balance
- Minimum Cash Balance
Cash Available for Debt Repayment

Long Term (commited payments)

Beginning Balance
Issuance
(Repayment/ Amortization)
Ending Balance

Interest Expense Calculation

Interest expense
Average Interest rate

Cash Balances
Average Cash Balance
Interest Rate
Interest Earned

Net Interest Expense

storicals Forecasts
FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Apple Inc. Financial Modeling Historicals
(All Data is in Millions $, Except Per Share Information) FY 2019

EBIT

Free Cash Flow to Firm (FCFF)

EBIT x (1-t)
Add: Depreciation & amortization
Add: Stock Based Compensation
Less: Capex
Add: Change in working capital
FCFF
% yoy (FCFF)
Terminal Value

WACC Inputs

Cost of Equity & Cost of Debt

Risk Free Rate

Beta
Equity Risk Premium
Cost of equity
Terminal Growth Rate

Market Value of Equity

Current Stock Price
Current shares outstanding
Options/Warrants Converts
Fully converted shares
Fully converted equity value

Calculating Book value of Debt

Short-Term Debt
Straight Long-Term Debt
Value of Debt

Calculating Debt to Equity ratio

Proporiton of Equity in the Capital Strucuture
Proporiton of Debt in the Capital Strucuture
Debt to equity ratio

WACC Calculations
Risk Free rate
Market risk premium
Levered beta of company
 Cost of equity
Pre-tax cost of debt
Tax rate
After tax cost of debt
WACC

Free cash flow to firm of explicit period (2021E to 2040E)

Cash Flows
NPV of explicit period

Terminal value @ perpetual growth

Terminal value
NPV of terminal value -

DCF Valuation Summary

DCF calculation as of Valuation Target (Year end)

NPV of explicit period
NPV of terminal value
Enterprise Value
+ Cash
- Debt
Equity value
+ Marketable securities, restricted cash
Adjusted Equity Value
Share Price
Growth
Historicals
FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
 FY 2022 FY 2023 FY 2024 FY 2025

Sensitivity Analysis
WACC
 Forcast
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
FY 2026 FY 2027 FY 2028 FY 2029 FY 2030
Forcast
FY 2031 FY 2032 FY 2033 FY 2034 FY 2035
FY 2031 FY 2032 FY 2033 FY 2034 FY 2035
FY 2036 FY 2037 FY 2038 FY 2039 FY 2040
FY 2036 FY 2037 FY 2038 FY 2039 FY 2040