APPLE, INC FINANCIAL MODEL

ANSHIK SHARMA
 MARKET CAPITALISATION ENTERPRISE VALUE REVENUE SHARE PRICE INDUSTRY SECTOR

$2.98 trillion $3.01 trillion $381.62B $381.62B INFORMATION TECHNOLOGY

SECTOR

REVENUE EARNING PER SHARE

Apple Inc. (formerly Apple 585559 11.18
536689
Computer, Inc.) is an 492494 9.85
American multinational 452478
8.68
3,94,328 416205
corporation and technology 3,65,817 3,83,285 7.61
company headquartered 6.73
in Cupertino, California, 6.15 6.16
5.67
in Silicon Valley. It designs,
develops, and sells consumer
electronics, computer
software, and online
services. Devices include
the iPhone, iPad, Mac, Apple 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E
Watch, Vision Pro, and Apple
TV; operating
systems include iOS, iPadOS,
and macOS; and software
applications and services
PRODUCT WISE NET SALES RETAINED EARNINGS
include iTunes, iCloud, Apple 3,00,000 1,39,318
Music, and Apple TV+.
2,50,000 1,24,451
Apple became the first
publicly traded U.S. 1,11,108
2,00,000
company to be valued at 98,706
over $1 trillion in August 1,50,000 88,483 2028 E
2018, then at $2 trillion in 81,999 2027 E
August 2020, and at 1,00,000 2026 E
85,010
$3 trillion in January 2022. 2025 E
50,000 80,249
2024 E
In June 2023, it was valued 2023 A
at just over $3 trillion. 0 2022 A
2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E 2021 A
IPHONE Mac iPad Wearables, Home and Accessories Services 1
APPLE INCOME STATEMENT HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

Net sales:
Products 2,97,392 3,16,199 2,98,085 319077 341752 366266 392790 421513
Services 68,425 78,129 85,200 97128 110726 126228 143899 164045
Total net sales 3,65,817 3,94,328 3,83,285 416205 452478 492494 536689 585559

Cost of sales:
Products 1,92,266 2,01,471 1,89,282 202295 216671 232213 249029 267239
Services 20,715 22,075 24,855 27876 31778 36227 41299 47081
Total cost of sales 2,12,981 2,23,546 2,14,137 230171 248449 268440 290328 314320
Gross margin 1,52,836 1,70,782 1,69,148 186034 204029 224054 246361 271238

Operating expenses:
Research and development 21,914 26,251 29,915 33296 36198 39400 42935 46845
Selling, general and administrative 21,973 25,094 24,932 27886 30316 32997 35958 39232
Total operating expenses 43,887 51,345 54,847 61182 66514 72397 78893 86077

Operating income 1,08,949 1,19,437 1,14,301 1,24,852 1,37,515 1,51,657 1,67,468 1,85,161
Other income/(expense), net 258 -334 -565 -2091 206 2771 5624 8769
Income before provision for income taxes 1,09,207 1,19,103 1,13,736 1,22,762 1,37,721 1,54,428 1,73,092 1,93,930
Provision for income taxes 14,527 19,300 16,741 18097.5 20963.64 23001.01 25882 29134.12
Net income 94,680 99,803 96,995 104664 116757 131427 147210 164796

Dividend 14,431 14,793 14,996 16,182 18,051 20,319 22,760 25,478

Retained earnings 80,249 85,010 81,999 88,483 98,706 1,11,108 1,24,451 1,39,318

Basic EPS 5.67 6.15 6.16 6.73 7.61 8.68 9.85 11.18
Diluted EPS 5.61 6.11 6.13 6.70 7.58 8.64 9.81 11.13

Basic Weighted average shares ouststanding 16701 16216 15744 15544 15344 15144 14944 14744
Diluted Weighted average shares ouststanding 16865 16326 15813 15613 15413 15213 15013 14813
APPLE BALANCE SHEET HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

ASSETS
Current assets:
Cash and cash equivalents 23,646 29,965 1,12,107 2,14,384 3,29,395 4,62,200 6,13,994
Marketable securities 24,658 31,590 31,590 31,590 31,590 31,590 31,590
Accounts receivable, net 28,184 29,508 31324 34054 37065 40391 44069
Vendor non-trade receivables 32,748 31,477 34870 37909 41262 44964 49059
Inventories 4,946 6,331 6025 6453 6915 7416 7959
Other current assets 21,223 14,695 20810 22624 24625 26834 29278
Total current assets 1,35,405 1,43,566 2,36,725 3,47,013 4,70,852 6,13,396 7,75,948

Non-current assets:
Marketable securities 1,20,805 1,00,544 1,00,544 1,00,544 1,00,544 1,00,544 1,00,544
Property, plant and equipment, 42,117 43,715 40,491 36,331 31,170 24,936 17,551
Other non-current assets 54,428 64,758 64,758 64,758 64,758 64,758 64,758
Total non-current assets 2,17,350 2,09,017 2,05,793 2,01,633 1,96,472 1,90,238 1,82,853
Total assets 3,52,755 3,52,583 4,42,518 5,48,646 6,67,324 8,03,634 9,58,801

Liabilities & shareholder equity

Current liabilities:
Accounts payable 64,115 62,611 68107 73516 79431 85908 93007
Other current liabilities 60,845 58,829 58829 58829 58829 58829 58829
Deferred revenue 7,912 8,061 8,061 8,061 8,061 8,061 8,061
Commercial paper 9,982 5,985 0 0 0 0 0
Term debt 11,128 9,822 10,775 12,265 9,786 7,800 0
Total current liabilities 1,53,982 1,45,308 1,45,772 1,52,671 1,56,107 1,60,598 1,59,897

Non-current liabilities:
Term debt 98,959 95,281 84,506 72,241 62,455 54,655 54,655
Other non-current liabilities 49,142 49,848 49,848 49,848 49,848 49,848 49,848
Total non-current liabilities 1,48,101 1,45,129 1,34,354 1,22,089 1,12,303 1,04,503 1,04,503
Total liabilities 3,02,083 2,90,437 2,80,126 2,74,760 2,68,410 2,65,101 2,64,400

Shareholders’ equity:
Common stock 64,849 73,812 85,575 98,364 1,12,284 1,27,452 1,44,002
Accumulated deficit -3,068 -214 88,269 1,86,974 2,98,082 4,22,532 5,61,850
Accumulated other comprehensive loss -11,109 -11,452 -11,452 -11,452 -11,452 -11,452 -11,452
Total shareholders’ equity 50,672 62,146 1,62,392 2,73,886 3,98,913 5,38,533 6,94,401
Total liabilities and shareholders’ equity 3,52,755 3,52,583 4,42,518 5,48,646 6,67,324 8,03,634 9,58,801

Difference Check 0 0 0 0 0 0 0
APPLE CASH FLOW HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

Profit after tax 1,04,664 1,16,757 1,31,427 1,47,210 1,64,796

Depreciation&amortization 15294 17282 19444 21798 24366
Stock based compensation 7,906 9,038 10,833 11763 12789 13920 15169 16550
Change in market securities 0 0 0 0 0
Change in accounts receivable,net -1816 -2730 -3012 -3326 -3678
Change in inventories 306 -428 -463 -501 -542
Change in vendor non-trade receivables -3393 -3039 -3353 -3703 -4094
Change in other current assets -6115 -1814 -2001 -2210 -2443
Change in accounts payable 5496 5409 5915 6477 7099
Change in other current liabilities 0 0 0 0 0
Change in deferred revenue 0 0 0 0 0
Change in others 0 0 0 0 0
Cash flow from operations: 1,26,201 1,44,225 1,61,878 1,80,915 2,02,054

CapEx on PP&E -12070 -13122 -14282 -15564 -16981

Other Incomes 0 0 0 0 0
Cash flow from investments: -12,070 -13,122 -14,282 -15,564 -16,981

Dividend paid -16,182 -18,051 -20,319 -22,760 -25,478

Equity issue 0 0 0 0 0
Equity buyback 0 0 0 0 0
Options proceeds 0 0 0 0 0
Change in debt -15,807 -10,775 -12,265 -9,786 -7,800
Cash flow from financing: -31,989 -28,826 -32,584 -32,546 -33,278

Surplus/Deficit 82,142 1,02,277 1,15,011 1,32,805 1,51,794

Opening cash balance 29,965 1,12,107 2,14,384 3,29,395 4,62,200
Closing cash balance 1,12,107 2,14,384 3,29,395 4,62,200 6,13,994
APPLE DEBT SCHEDULE HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

Free Cash Before Debt: 97,949 1,13,052 1,27,276 1,42,591 1,59,594

Add:Opening Cash 29,965 1,12,107 2,14,384 3,29,395 4,62,200
Less:Minimum Cash Blance 2% -8324 -9050 -9850 -10734 -11711
Free Cash for Debt: 1,19,590 2,16,109 3,31,810 4,61,252 6,10,083

Short term Debt 11,128 9,822 10,775 12,265 9,786 7,800

Long term Debt 98,959 95,281 84,506 72,241 62,455 54,655 54,655

Borrowings/Paydowns 5,985 0 0 0 0

Commercial paper 9,982 5,985 0 0 0 0 0

Total Debt 1,20,069 1,11,088 95,281 84,506 72,241 62,455 54,655

Interest Expense 2931 3933 3511 3059 2667 2292 1993

Interest Incomes 1421 3265 5438 7916 10762
Interest Rate 3% 3% 3% 3% 3% 3%
Interest Expense Rate 2% 2% 2% 2% 2% 2%
APPLE REVENUE FORECASTING HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

iPhone 1,91,973 2,05,489 2,00,583 214624 229647 245723 262923 281328

Mac 35,190 40,177 29,357 33467 38152 43494 49583 56524
iPad 31,862 29,292 28,300 29149 30023 30924 31852 32807
Wearables, Home and Accessories 38,367 41,241 39,845 41837 43929 46126 48432 50853
Services 68,425 78,129 85,200 97128 110726 126228 143899 164045
Total Net Sales 3,65,817 3,94,328 3,83,285 4,16,205 4,52,478 4,92,494 5,36,689 5,85,559

Growth Rates
iPhone 7% -2% 7% 7% 7% 7% 7%
Mac 14% -27% 14% 14% 14% 14% 14%
iPad -8% -3% 3% 3% 3% 3% 3%
Wearables, Home and Accessories 7% -3% 5% 5% 5% 5% 5%
Services 14% 9% 14% 14% 14% 14% 14%
APPLE EXPENSE SCHEDULE HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

Net sales :
Products 2,97,392 3,16,199 2,98,085 3,19,077 3,41,752 3,66,266 3,92,790 4,21,513
services 68,425 78,129 85,200 97,128 1,10,726 1,26,228 1,43,899 1,64,045
Total Sales 3,65,817 3,94,328 3,83,285 4,16,205 4,52,478 4,92,494 5,36,689 5,85,559

Cost of sales:
Products 1,92,266 2,01,471 1,89,282 202295 216671 232213 249029 267239
Services 20,715 22,075 24,855 27876 31778 36227 41299 47081

Operating expenses:
Research and development 21,914 26,251 29,915 33296 36198 39400 42935 46845
Selling, general and administrative 21,973 25,094 24,932 27886 30316 32997 35958 39232

AS a % of Sales
Products 64.7% 63.7% 63.5% 63.40% 63.40% 63.40% 63.40% 63.40%
Services 30.3% 28.3% 29.2% 28.70% 28.70% 28.70% 28.70% 28.70%

AS a % of total sales
Research and development 6.0% 6.7% 7.8% 8% 8% 8% 8% 8%
Selling, general and administrative 6.0% 6.4% 6.5% 6.70% 6.7% 6.7% 6.7% 6.7%

Effective Tax Rate 13% 16% 15% 15% 15% 15% 15% 15%
APPLE BALANCE SHEET SCHEDULE HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

Net sales 3,65,817 3,94,328 3,83,285 4,16,205 4,52,478 4,92,494 5,36,689 5,85,559
COGS 1,92,266 2,01,471 1,89,282 2,02,295 2,16,671 2,32,213 2,49,029 2,67,239
TOTAL COGS 2,12,981 2,23,546 2,14,137 2,30,171 2,48,449 2,68,440 2,90,328 3,14,320

CURRENT ASSTES
Accounts receivable, net 28,184 29,508 31324 34054 37065 40391 44069
Vendor non-trade receivables 32,748 31,477 34870 37909 41262 44964 49059
Inventories 4,946 6,331 6025 6453 6915 7416 7959
Other current assets 21,223 14,695 20810 22624 24625 26834 29278

CURRENT LIABILITIES
Accounts payable 64,115 62,611 68107 73516 79431 85908 93007
Other current liabilities 60,845 58,829 58,829 58,829 58,829 58,829 58,829

Collection period | DSO 27.47 27.47 27.47 27.47 27.47 27.47

Inventory processing period | IOH 10.87 10.87 10.87 10.87 10.87 10.87
Vendor non trade collection period 30.58 30.58 30.58 30.58 30.58 30.58
Other current assets as % of Sales 5% 5% 5% 5% 5% 5%

Payment period | PP 108 108 108 108 108 108

Other current liabilities

Dividend payout ratio 15% 15% 15% 15% 15% 15% 15% 15%
APPLE DEPRECIATION SCHEDULE HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

NET SALES 3,65,817 3,94,328 3,83,285 4,16,205 4,52,478 4,92,494 5,36,689 5,85,559
Cpaex of the year 11,085 10,708 10,959 12070 13122 14282 15564 16981
Capex as a % of Sales 3.0% 2.7% 2.9% 2.9% 2.9% 2.9% 2.9% 2.9%

Property Plant & Equipment

Opening PP&E 1,14,599 1,26,669 1,39,791 1,54,073 1,69,637

Additions during the year 12070 13122 14282 15564 16981
Closing Gross PP&E 1,14,457 1,14,599 1,26,669 1,39,791 1,54,073 1,69,637 1,86,618
Accumulated Depreciation 72,340 70,884 86,178 1,03,459 1,22,903 1,44,702 1,69,068
Net PP&E 42,117 43,715 40,491 36,331 31,170 24,936 17,551

Land and buildings 22,126 23,446

Machinery, equipment and internal-use software 81,060 78,314
Leasehold improvements 11,271 12,839
Depreciation of the year 11,104 11,519

Asset Breakup
% LIFE
Land and buildings 20% 40 2469 2685 2922 3184 3474
Machinery, equipment and internal-use software 68% 5 8248 8967 9760 10636 11605
Leasehold improvements 11% 7 1352 1470 1600 1744 1902

Land and buildings Depreciation 2024 A 2025 A 2026 A 2027 A 2028 A

Life 40 2
Land and building Gross Value 23,446
Depreciation 586.15 586.15 586.15 586.15 586.15
YEAR USEFUL LIFE CAPEX
2024 40 2469 30.87 61.74 61.74 61.74 61.74
2025 40 2685 33.56 67.12 67.12 67.12
2026 40 2922 36.53 73.05 73.05
2027 40 3184 39.80 79.61
2028 40 3474 43.43

Total Dep on Land and Building 617 681 752 828 911

Machinery, equipment and internal-use software 2024 A 2025 A 2026 A 2027 A 2028 A

Life 7
Machinery, equipment and internal-use software value 78,314
Depreciation 11188 11188 11188 11188 11188
YEAR USEFUL LIFE CAPEX
2024 5 8248 825 1650 1650 1650 1650
2025 5 8967 897 1793 1793 1793
2026 5 9760 976 1952 1952
2027 5 10636 1064 2127
2028 5 11605 1160

Total Dep on Machinery 12,013 13,734 15,607 17,646 19,870

Leasehold improvements 2024 A 2025 A 2026 A 2027 A 2028 A

Life 5
Leasehold improvements 12,839
Depreciation 2568 2568 2568 2568 2568
YEAR USEFUL LIFE CAPEX
2024 7 1352 97 193 193 193 193
2025 7 1470 105 210 210 210
2026 7 1600 114 229 229
2027 7 1744 125 249
2028 7 1902 136

Total Dep on Leasehold improvements 2,664 2,866 3,085 3,324 3,585

Total Depreciation of the Year 15294 17282 19444 21798 24366

APPLE SCENARIO ANALYSIS HISTORICAL FORECAST
All Data in Millions Dollars $ 2021 A 2022 A 2023 A 2024 E 2025 E 2026 E 2027 E 2028 E

Scenario Analysis of Revenue Growth

Best 1

Growth Rate in IPHONES 7% -2% 7% 7% 7% 7% 7%

Best 7% 7% 7% 7% 7%
Base 3% 3% 3% 3% 3%
Weak 1% 1% 1% 1% 1%

Growth Rate in MAC 14% -27% 14% 14% 14% 14% 14%

Best 14% 14% 14% 14% 14%

Base 5% 5% 5% 5% 5%
Weak 1% 1% 1% 1% 1%

Growth Rate in IPAD -8% -3% 3% 3% 3% 3% 3%

Best 3% 3% 3% 3% 3%
Base 1% 1% 1% 1% 1%
Weak -2% -2% -2% -2% -2%

Growth Rate in Wearibles and home Accessories 7% -3% 5% 5% 5% 5% 5%

Best 5% 5% 5% 5% 5%
Base 3% 3% 3% 3% 3%
Weak 1% 1% 1% 1% 1%

Growth Rate in Services 14% 9% 14% 14% 14% 14% 14%

Best 14% 14% 14% 14% 14%

Base 12% 12% 12% 12% 12%
Weak 9% 9% 9% 9% 9%