1 Top Management and Board of Directors; 2 INSIDER OWNERSHIP AND SELLING IN THE PAST 12 MONTHS; 3 Peer Comparison & Ranking of AAPL; 4 Patents Top Management and Board of Directors Top Management Top Management [Five top executives with tenure > 7 yrs] Name Designation Since Appointment Tim Cook Chief Executive Officer, Director 12 Yrs, 1 Mo Arthur D. Levinson Chairman, Director 23 Yrs, 1 Mo Luca Maestri Chief Financial Officer, Senior Vice President 9 Yrs, 5 Mos Jeff Williams Chief Operating Officer 7 Yrs, 9 Mos Katherine Adams Senior Vice President, General Counsel - Board Of Directors Board Of Directors [Two directors with tenure > 8 yrs] Name Since Appointment Ronald D. Sugar 12 Yrs, 10 Mos James A. Bell 8 Yrs Board Of Directors [Five directors with tenure < 2 yrs] Name Since Appointment Alex Gorsky 1 Yr, 10 Mos Susan L. Wagner - Albert Gore - Monica Lozano - Andrea Jung - INSIDER OWNERSHIP AND SELLING IN THE PAST 12 MONTHS Shares Held by Insiders as on Sep 29, 2023 (Value computed at price $171.21) Name Shares Held Value, $ Arthur D. Levinson 4,588,724 785,635,436 Jeff Williams 489,816 83,861,397 Katherine Adams 416,714 71,345,604 Luca Maestri 107,661 18,432,640 Ronald D. Sugar 105,943 18,138,501 Andrea Jung 72,637 12,436,181 James A. Bell 36,675 6,279,127 Monica Lozano 5,239 896,969 Alex Gorsky 2,171 371,697 Total 5,825,580 997,397,552 Arthur D. Levinson now has a beneficial interest in 4,588,724 Apple shares worth $785.6 million. Nature of Ownership Shares Held Value, $ Equity-Non-Derivative Securities NA 4,532,724 776,047,676 By Spouse 56,000 9,587,760 Total (Equity) 4,588,724 785,635,436 Jeff Williams now has a beneficial interest in 489,816 Apple shares worth $83.9 million. Katherine Adams now has a beneficial interest in 416,714 Apple shares worth $71.3 million. Luca Maestri now has a beneficial interest in 107,661 Apple shares worth $18.4 million. Ronald D. Sugar now has a beneficial interest in 105,943 Apple shares worth $18.1 million. Andrea Jung now has a beneficial interest in 72,637 Apple shares worth $12.4 million. James A. Bell now has a beneficial interest in 36,675 Apple shares worth $6.3 million. Monica Lozano now has a beneficial interest in 5,239 Apple shares worth $896,969. Alex Gorsky now has a beneficial interest in 2,171 Apple shares worth $371,697. Insider selling Summary in the past 12 months Name No. of Shares Price, $ Value, $ Williams Jeffrey E [COO] 265,547 161.6 42,918,124 Adams Katherine L. [Senior Vice President] 253,364 148.2 37,553,997 Maestri Luca [CFO] 246,495 158.6 39,093,098 Total 765,406 156.2 119,565,219 Peer Comparison & Ranking of AAPL GLOBAL PEER COMPARISON: AAPL - SIZE (all figures in $) In its Global Peer Group of 9 companies AAPL is ranked AAPL is ranked first (1) by MCap, Revenue, Net Profit and Total Assets. Name (Code) MCap Revenue Net Profit Total Assets Rank of AAPL 1 1 1 1 Apple (AAPL) 2,676.7B 394.3B 99.8B 352.8B Meta Platforms (META) 668.2B 116.6B 23.2B 185.7B Oracle (ORCL) 287.7B 50B 8.5B 134.4B ASML (ASML) 238.4B 22.3B 6.7B 40.8B Accenture (ACN) 204B 61.6B 6.9B 47.3B IBM (IBM) 127.8B 60.5B 1.6B 127.2B Siemens (SIE) 115.8B 75.6B 3.9B 159.2B Analog Devices (ADI) 90.1B 12B 2.7B 50.3B Shopify (SHOP) 69.7B 5.6B (3.5B) 10.8B GLOBAL PEER COMPARISON: AAPL - RELATIVE VALUE INDICATORS In value terms, comparing relative value of its shares, AAPL is ranked + 7 out of 9 by Dividend Yield (%) [0.6] + 3 out of 9 by Price/Earnings per share [27.8] + 6 out of 9 by Price/Sales per share [6.8] Name (Code) Currency Code Last Price Div Yld (%) P/E P/S P/Book Rank of AAPL by value 7 3 6 Apple (AAPL) USD 171.2 0.6 27.8 6.8 Meta Platforms (META) USD 300.2 35.2 5.8 7.4 Oracle (ORCL) USD 106 1.4 33.7 5.8 ASML (ASML) EUR 559.1 1.1 34.7 10.7 Accenture (ACN) USD 307.1 1.5 25.7 3.1 20.8 IBM (IBM) USD 140.3 4.7 78.7 2.1 Siemens (SIE) EUR 136.9 3.1 18.6 1.4 12.4 Analog Devices (ADI) USD 175.1 1.9 33.4 7.5 Shopify (SHOP) USD 54.6 11.5 12.0 USD 1= 0.945 Euro (EUR) FAANG PEER COMPARISON: AAPL - SIZE (all figures in $) In its FAANG Peer Group of 5 companies (Facebook, Apple, Amazon, Netflix and Alphabet's Google) AAPL is ranked AAPL is ranked first (1) by MCap, Net Profit, second (2) by Revenue and third (3) by Total Assets. Name (Code) MCap Revenue Net Profit Total Assets Rank of AAPL 1 2 1 3 Apple (AAPL) 2,676.7B 394.3B 99.8B 352.8B Amazon (AMZN) 1,303B 514B (2.7B) 462.7B Alphabet Class A (GOOGL) 776.4B 282.8B 60B 365.3B Meta Platforms (META) 668.2B 116.6B 23.2B 185.7B Netflix (NFLX) 167.3B 31.6B 4.5B 48.6B FAANG PEER COMPARISON: AAPL - VALUATION INDICATORS In value terms, comparing relative value of its shares, AAPL is ranked + 1 out of 5 by Price/Earnings per share [27.8] + 5 out of 5 by Price/Sales per share [6.8] Name (Code) Currency Code Last Price P/E P/S P/Book Rank of AAPL by value 1 5 Apple (AAPL) USD 171.2 27.8 6.8 Amazon (AMZN) USD 127.1 2.5 10.3 Alphabet Class A (GOOGL) USD 130.9 28.8 2.8 3.5 Meta Platforms (META) USD 300.2 35.2 5.8 7.4 Netflix (NFLX) USD 377.6 37.3 5.3 8.0 BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING: Apple vs NASDAQ Market Out of 3,079 stocks and 3 units in the NASDAQ Market, Apple is ranked first(1) by Net Profit $, second(2) by Revenue, sixth(6) by Total Assets and Forty-first(41) by ROA. NASDAQ Avg AAPL AAPL Rank Net Profit $ - 99.8 B 1 Revenue $ - 394.3 B 2 Total Assets $ - 352.8 B 6 ROA (%) 3.7 28.3 41 P/Earnings 42.2x 27.8x 112 EBITDA Margin% 13.1 30.2 176 P/Sales 3.4x 6.8x 179 P/Earnings/ Growth - 3.3x 386 Yield (%) 0.8 0.6 667 Total Debt/Equity (the lower the better) 0.6x 0.2x 1097 Premium to 52-Wk Low (%) 29.2 37.8 1852 Negative values are shown in brackets. MARKET SHARE Apple has a position of market dominance in the Technology sector. Apple vs Technology sector [Technology sector Total in Brackets] Revenue of $394.3 billion[56.5% of aggregate sector revenue of $702.7 billion; up from 56.1% in the previous year.] Net Profit of $99.8 billion [82.2% of aggregate sector net profit of $121 billion; up from 74.6% in the previous year.] EBIT of $119.1 billion [79.7% of aggregate sector EBIT of $148.2 billion; up from 70.6% in the previous year.] GLOBAL RANK [out of 46,829 stocks] AND RANK OF APPLE IN THE AMERICAN REGION [out of 10,094 stocks] Description Value Global Rank In Am Region Total Assets ($) 352.8B 214 82 Revenue ($) 394.3B 39 7 Net Profit ($) 99.8B 25 2 Return on Equity % 197.0 110 52 Net Profit Margin % 25.3 4,790 936 Price to Book 52.7 35,361 5,803 Price/Earnings 27.8 16,113 2,719 Yield % 0.6 20,839 3,477 PV1000 (1Year) $ 1,216 16,347 2,720 $ Change (1Year) % 14.6 15,185 2,477 RANK OF APPLE IN THE NASDAQ-100 INDEX [out of 94 stocks], IN THE NASDAQ MARKET [out of 3209 stocks] AND IN THE TECHNOLOGY SECTOR [out of 138 stocks] Description Value In NASDAQ-100 Index In NASDAQ Market In Technology sector Total Assets ($) 352.8B 4 5 1 Revenue ($) 394.3B 2 2 1 Net Profit ($) 99.8B 1 1 1 Return on Equity % 197.0 3 13 1 Net Profit Margin % 25.3 19 154 1 Price/Earnings 27.8 30 861 23 Yield % 0.6 43 677 15 PV1000 (1Year) $ 1,216 52 159 14 LONG-TERM FUNDAMENTAL RANKING: 4 OUT OF 5 [5 is best] Apple is ranked number 1 out of 155 listed technology companies in the United States with a market capitalization of $2,676.7 billion. Within its sector it has a relatively low P/E of 27.8. Finally, its earnings growth in the past 12 months has been a comparatively high 8.5%. Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1. Patents Number of Patents Issued to Apple by the US Patent Office and the European Patent Office A total of 26,328 patents were issued to Apple in the last nine years. In the past year 6,203 patents were issued, 2.1 times average of 2,925 patents per year. 12 months ended Sep 29 No. of Patents Issued 2023 6,203 2022 3,013 2021 3,335 2020 3,221 2019 2,826 2018 2,588 2017 2,336 2016 2,007 2015 799 Total 26,328 Rank by patents issued in the past 12 months: Apple vs NASDAQ stocks Apple is ranked 2 by patents issued in the past year out of 3,688 NASDAQ listed companies. A total of 86,802 patents were issued to NASDAQ listed companies in the past year, an average of 76.8 patents per company. Apple received 6,203 patents in the past 12 months, 264 times average. 1 Tax & Dividend; 2 Financials as Reported FY 2022, Past 10 Years Tax & Dividend Average Income Tax Paid (Past 5 Years) In the past 5 years, Income Tax as % of profit before tax decreased from 18.3% to 16.2% and Income Tax as % of operating cash flow decreased from 18.3% to 16.2%. Description 2022 2021 2020 2019 2018 As % of profit before tax 16.2 13.3 14.4 15.9 18.3 As % of operating cash flow 16.2 13.3 14.4 15.9 18.3 The 5-year average of profit before tax was 15.6%. Footprint of Low Tax Subsidiaries Corporate Tax rate of Apple in country of incorporation: Subsidiary Incorporated in Corporate Tax Rate (%) Apple Sales International Ireland 12.5 Apple Operations International Ireland 12.5 Apple Operations Europe Ireland 12.5 Dividend History In the past 5 years annual dividends have increased by 19.0c from 75.0c to 94.0c. Based on a start date of 5 years ago, there has been no decline in dividends over the last 5 years. Date Paid Value (c) Type 11 Aug 2023 24 Quarterly 12 May 2023 24 Quarterly 10 Feb 2023 23 Quarterly 04 Nov 2022 23 Quarterly Tr 12 Months 94 2021 - 2022 90 2020 - 2021 85 2019 - 2020 79.5 2018 - 2019 75 Financials as Reported FY 2022, Past 10 Years Financials as reported (FY 2022 [year-ended 24 September 2022 ]) 10-K RESULTS OF OPERATIONS AND FINANCIAL CONDITION (In $ Million, except per share data and shares outstanding) INCOME STATEMENT AS REPORTED (FY 2022 [year-ended 24 September 2022 ]) Description $ Million $ Million Sep 24, 2022 Sep 25, 2021 Change % Net sales: Products 316,199 297,392 Up 6.3 Services 78,129 68,425 Up 14.2 Total net sales 394,328 365,817 Up 7.8 Cost of sales: Products 201,471 192,266 Up 4.8 Services 22,075 20,715 Up 6.6 Total cost of sales 223,546 212,981 Up 5.0 Gross margin 170,782 152,836 Up 11.7 Operating expenses: Research and development 26,251 21,914 Up 19.8 Selling general and administrative 25,094 21,973 Up 14.2 Total operating expenses 51,345 43,887 Up 17.0 Operating income 119,437 108,949 Up 9.6 Other income/(expense) net -334 258 Deterioration Income before provision for income taxes 119,103 109,207 Up 9.1 Provision for income taxes 19,300 14,527 Up 32.9 Net income 99,803 94,680 Up 5.4 Earnings per share: Basic $6.15 $5.67 Up 8.5 Diluted $6.11 $5.61 Up 8.9 Shares used in computing earnings per share: Basic 16,215,963,000 16,701,272,000 Down 2.9 Diluted 16,325,819,000 16,864,919,000 Down 3.2 BALANCE SHEET AS REPORTED (FY 2022 [year-ended 24 September 2022 ]) Description $ Million $ Million Sep 24, 2022 Sep 25, 2021 Change % Current assets: Cash and cash equivalents 23,646 34,940 Down 32.3 Marketable securities 24,658 27,699 Down 11.0 Accounts receivable net 28,184 26,278 Up 7.3 Inventories 4,946 6,580 Down 24.8 Vendor non-trade receivables 32,748 25,228 Up 29.8 Other current assets 21,223 14,111 Up 50.4 Total current assets 135,405 134,836 Up 0.4 Non-current assets: Marketable securities 120,805 127,877 Down 5.5 Property plant and equipment net 42,117 39,440 Up 6.8 Other non-current assets 54,428 48,849 Up 11.4 Total non-current assets 217,350 216,166 Up 0.5 Total assets 352,755 351,002 Up 0.5 Current liabilities: Accounts payable 64,115 54,763 Up 17.1 Other current liabilities 60,845 47,493 Up 28.1 Deferred revenue 7,912 7,612 Up 3.9 Commercial paper 9,982 6,000 Up 66.4 Term debt 11,128 9,613 Up 15.8 Total current liabilities 153,982 125,481 Up 22.7 Non-current liabilities: Term debt 98,959 109,106 Down 9.3 Other non-current liabilities 49,142 53,325 Down 7.8 Total non-current liabilities 148,101 162,431 Down 8.8 Total liabilities 302,083 287,912 Up 4.9 Commitments and contingencies Shareholders equity: Common stock and additional paid-in capital 0.00001 par value: 50400000 shares authorized; 15943425 and 16426786 shares issued and outstanding respectively 64,849 57,365 Up 13.0 Retained earnings/(Accumulated deficit) -3,068 5,562 Deterioration Accumulated other comprehensive income/(loss) -11,109 163 Deterioration Total shareholders equity 50,672 63,090 Down 19.7 Total liabilities and shareholders equity 352,755 351,002 Up 0.5 CASH FLOW AS REPORTED (FY 2022 [year-ended 24 September 2022 ]) Description $ Million $ Million Sep 24, 2022 Sep 25, 2021 Change % Cash cash equivalents and restricted cash beginning balances 35,929 39,789 Down 9.7 Operating activities: Net income 99,803 94,680 Up 5.4 Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization 11,104 11,284 Down 1.6 Share-based compensation expense 9,038 7,906 Up 14.3 Deferred income tax expense/(benefit) 895 -4,774 Recovery Other 111 -147 Recovery Changes in operating assets and liabilities: Accounts receivable net -1,823 -10,125 Improved 82.0 Inventories 1,484 -2,642 Recovery Vendor non-trade receivables -7,520 -3,903 Deterioration 92.7 Other current and non-current assets -6,499 -8,042 Improved 19.2 Accounts payable 9,448 12,326 Down 23.3 Deferred revenue 478 1,676 Down 71.5 Other current and non-current liabilities 5,632 5,799 Down 2.9 Cash generated by operating activities 122,151 104,038 Up 17.4 Investing activities: Purchases of marketable securities -76,923 -109,558 Improved 29.8 Proceeds from maturities of marketable securities 29,917 59,023 Down 49.3 Proceeds from sales of marketable securities 37,446 47,460 Down 21.1 Payments for acquisition of property plant and equipment -10,708 -11,085 Improved 3.4 Payments made in connection with business acquisitions net -306 -33 Deterioration 827.3 Other -1,780 -352 Deterioration 405.7 Cash used in investing activities -22,354 -14,545 Deterioration 53.7 Financing activities: Payments for taxes related to net share settlement of equity awards -6,223 -6,556 Improved 5.1 Payments for dividends and dividend equivalents -14,841 -14,467 Deterioration 2.6 Repurchases of common stock -89,402 -85,971 Deterioration 4.0 Proceeds from issuance of term debt net 5,465 20,393 Down 73.2 Repayments of term debt -9,543 -8,750 Deterioration 9.1 Proceeds from/(Repayments of) commercial paper net 3,955 1,022 Up 287.0 Other -160 976 Deterioration Cash used in financing activities -110,749 -93,353 Deterioration 18.6 Decrease in cash cash equivalents and restricted cash -10,952 -3,860 Deterioration 183.7 Cash cash equivalents and restricted cash ending balances 24,977 35,929 Down 30.5 Download APPLE Financials Past 10 Years Description Sep 22 Sep 21 Sep 20 Sep 19 Sep 18 Income Statement Revenue per share 24.15 21.69 15.66 13.99 53.12 Tax (B) 19.3 14.5 9.7 10.5 13.4 Net profit (B) 99.8 94.7 57.4 55.3 59.5 EPS 6.15 5.67 3.31 2.99 3 Balance Sheet Equity Share Capital (B) 50.7 63.1 65.3 90.5 107.1 Retained Earnings (B) (3.1) 5.6 15 45.9 66.9 Total Debt (B) 10 6 5 6 12 Total Assets (B) 352.8 351 323.9 338.5 365.7 Current Asset (B) 135.4 134.8 143.7 162.8 131.3 Fixed Asset (B) 42.1 39.4 36.8 37.4 41.3 Working Capital (B) (18.6) 9.4 38.3 57.1 15.4 Cash Flow Operating Cash Flow (B) 122.2 104 80.7 69.4 77.4 Investing Cash Flow (B) (22.4) (14.5) (4.3) 45.9 16.1 Financing Cash Flow (B) (110.7) (93.4) (86.8) (91) (87.9) Net Cash Flow (B) (11) (3.9) (10.4) 24.3 5.6 Description Sep 17 Sep 16 Sep 15 Sep 14 Sep 13 Income Statement Revenue per share 43.65 39.21 40.34 29.86 26.21 Tax (B) 15.7 15.7 19.1 14 13.1 Net profit (B) 48.4 45.7 53.4 39.5 37 EPS 2.32 2.09 2.32 1.62 1.43 Balance Sheet Equity Share Capital (B) 134 128.2 119.4 111.5 123.5 Retained Earnings (B) 98.2 97 91.9 88.2 103.8 Total Debt (B) 12 87 64.3 35.3 17 Total Assets (B) 375.3 321.7 290.3 231.8 207 Current Asset (B) 128.6 106.9 89.4 68.5 73.3 Fixed Asset (B) 33.8 27 22.5 20.6 16.6 Working Capital (B) 27.8 27.9 8.8 5.1 29.6 Cash Flow Operating Cash Flow (B) 64.2 65.8 81.3 59.7 53.7 Investing Cash Flow (B) (46.4) (46) (56.3) (22.6) (33.8) Financing Cash Flow (B) (18) (20.5) (17.7) (37.5) (16.4) Net Cash Flow (195 M) (636 M) 7.3 B (415 M) 3.5 B