3-Year History of Important Financial Metrics (in billions):
| 12/31/2021 | 12/31/2022 | 12/31/2023 | 12/31/2024* | 3-Yr Change | |
| Market Cap | $2,901.65 | $2,066.94 | $2,994.37 | $3,785.30 | +$883.66 (+30%) |
| Cash & Investments | $63.91 | $51.36 | $162.13 | $65.17 | +$1.26 (+2%) |
| Revenue | $378.32 | $387.54 | $385.71 | $391.04 | +$12.71 (+3%) |
| Total Debt | $309.26 | $290.02 | $111.13 | $308.03 | -$1.23 (-0%) |
| Tangible Equity | $71.93 | $56.73 | $52.89 | $56.95 | -$14.98 (-21%) |
| Net Income | $100.56 | $95.17 | $100.91 | $93.74 | -$6.82 (-7%) |
| Net Cash Position | -$245.35 | -$238.67 | -$206.31 | -$242.86 | +$2.49 (+1%) |
*Most recent financial statement only as of 9/30/2024
- What has been the percentage change in their sales over the past three years?
- What has been the percentage change in their Net Income over the past three years?
- What has been the percentage change in their Tangible Equity over the past three years?
- What has been the percentage change in their Total Liabilities over the past three years?
- What has been the percentage change in their Gross Profit Margin over the past three years?
- What has been the percentage change in their Net Profit Margin over the past three years?
- What’s the percentage change in their Cash & Short Term Investments (STI) in the last 3 years?
- How much Cash & STI did Apple have 3 years ago?
- How much Cash & STI does Apple have now?
- How much tangible equity did Apple have 3 years ago?
- How much tangible equity does Apple now?
- What were Apple’s total liabilities 3 years ago?
- What was their price to sales ratio 10 years ago?
- What was their price to sales ratio 5 years ago?
- What is their price to sales ratio now?
- What was their price to earnings ratio 10 years ago?
- What was their price to earnings ratio 5 years ago?
- What is their price to earnings ratio now?
- Historically, do the P/S ratios of companies with slowing revenue growth rise or contract?
- Historically, do the P/E ratios of companies with slowing earnings growth rise or contract?
- Historically, are the P/S & P/E ratios of companies with the largest revenues Lower, much lower, about the same, larger, or much higher than companies with the largest revenues and earnings?
- Historically, what have been the average P/S ratios of the 10 largest companies in the US?
- Is that ratio higher or lower now? Explain why?
- Historically, when P/S ratios of S&P companies were lowest, did their future prices rise or fall?
- Historically, when P/E ratios of S&P companies were highest, did their future prices rise or fall?
- Do the prices of companies that are strong and profitable rise the most when their P/S ratios were at their lowest levels or at their highest levels?
- Is it more or less probable that Apples P/S and P/E ratios will rise from their current levels?
- If either, Apple’s revenues or earnings their slow somewhat, how much could their P/S ratio fall?
- What effect will a lower P/S ratio have on their price?
- What effect will a lower P/E ratio have on their price?
- Ten-year changes in Apple’s financial profile:
| Apple | 1/9/2015 | 1/9/2025 | 10-Yr Change |
| Market Cap | $652 billion | $3.67 trillion | +462% |
| Revenue | $183 billion | $391 billion | +114% |
| Net Income | $39.5 billion | $93.7 billion | +137% |
| Cash & ST Inv’s | $25.1 billion | $62.2 billion | +160% |
| P/S Ratio | 3.6 | 9.6 | +163% |
| P/E Ratio | 14 | 40 | +137% |
| 3-Yr Annual Revenue Growth |
19.1% | 2.25% | -88% |
- Does Apple have as much revenue and earnings growth potential in the next 10 years as they had 10 years ago?
- Does Apple’s stock price have as much growth potential today as it had 10 years ago?
- Is Apple’s stock price more or less risky now than it was 10 years ago?
- Has there even been a company with Apples’s financial profile whose stock price has grown?
Out of approximately 2,300 companies with a market value exceeding $1 billion, how many of these companies may have strong and liquid balance sheets, a solid earnings history, significantly lower P/E and P/S ratios, and operate in industries far less vulnerable to a consumer recession, a market correction, tariffs on Chinese imports, a technology innovation that reduces the demand for Apple’s leading edge products, and the most predictable of event that will cause their price to decline significantly, the inevitable forces of a compression in both their extremely-high, Price-to-Sales and Price-to-Earnings ratios?
How many solid companies can provide you with far greater upside and less risk of a major decline? Many. And quite a few are paying a dividend of 4% or more and have a far greater probability of recovering from a significant market decline, where Apple may not.