Apple Inc. 10-K form for the fiscal year ended 2023-09-30, page 28: 
Apple Inc.


CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)
|    |                                              |                   |         |                   |            |                   |         |            |    |         |
|---:|:---------------------------------------------|:------------------|:--------|:------------------|:-----------|:------------------|:--------|:-----------|:---|:--------|
|  1 |                                              | Years ended       |         |                   |            |                   |         |            |    |         |
|  2 |                                              | September 30,2023 |         | September 24,2022 |            | September 25,2021 |         |            |    |         |
|  3 | Net sales:                                   |                   |         |                   |            |                   |         |            |    |         |
|  4 | Products                                     | $                 | 298,085 |                   |            | $                 | 316,199 |            | $  | 297,392 |
|  5 | Services                                     | 85,200            |         |                   | 78,129     |                   |         | 68,425     |    |         |
|  6 | Total net sales                              | 383,285           |         |                   | 394,328    |                   |         | 365,817    |    |         |
|  8 | Cost of sales:                               |                   |         |                   |            |                   |         |            |    |         |
|  9 | Products                                     | 189,282           |         |                   | 201,471    |                   |         | 192,266    |    |         |
| 10 | Services                                     | 24,855            |         |                   | 22,075     |                   |         | 20,715     |    |         |
| 11 | Total cost of sales                          | 214,137           |         |                   | 223,546    |                   |         | 212,981    |    |         |
| 12 | Gross margin                                 | 169,148           |         |                   | 170,782    |                   |         | 152,836    |    |         |
| 14 | Operating expenses:                          |                   |         |                   |            |                   |         |            |    |         |
| 15 | Research and development                     | 29,915            |         |                   | 26,251     |                   |         | 21,914     |    |         |
| 16 | Selling, general and administrative          | 24,932            |         |                   | 25,094     |                   |         | 21,973     |    |         |
| 17 | Total operating expenses                     | 54,847            |         |                   | 51,345     |                   |         | 43,887     |    |         |
| 19 | Operating income                             | 114,301           |         |                   | 119,437    |                   |         | 108,949    |    |         |
| 20 | Other income/(expense), net                  | (565)             |         |                   | (334)      |                   |         | 258        |    |         |
| 21 | Income before provision for income taxes     | 113,736           |         |                   | 119,103    |                   |         | 109,207    |    |         |
| 22 | Provision for income taxes                   | 16,741            |         |                   | 19,300     |                   |         | 14,527     |    |         |
| 23 | Net income                                   | $                 | 96,995  |                   |            | $                 | 99,803  |            | $  | 94,680  |
| 25 | Earnings per share:                          |                   |         |                   |            |                   |         |            |    |         |
| 26 | Basic                                        | $                 | 6.16    |                   |            | $                 | 6.15    |            | $  | 5.67    |
| 27 | Diluted                                      | $                 | 6.13    |                   |            | $                 | 6.11    |            | $  | 5.61    |
| 29 | Shares used in computing earnings per share: |                   |         |                   |            |                   |         |            |    |         |
| 30 | Basic                                        | 15,744,231        |         |                   | 16,215,963 |                   |         | 16,701,272 |    |         |
| 31 | Diluted                                      | 15,812,547        |         |                   | 16,325,819 |                   |         | 16,864,919 |    |         |

See accompanying Notes to Consolidated Financial Statements.


Apple Inc. | 2023 Form 10-K | 28





, Apple Inc. 10-K form for the fiscal year ended 2023-09-30, page 30: 
Apple Inc.


CONSOLIDATED BALANCE SHEETS

(In millions, except number of shares, which are reflected in thousands, and par value)
|    |                                                                                                                                                                      |                   |         |                   |          |    |         |
|---:|:---------------------------------------------------------------------------------------------------------------------------------------------------------------------|:------------------|:--------|:------------------|:---------|:---|:--------|
|  1 |                                                                                                                                                                      | September 30,2023 |         | September 24,2022 |          |    |         |
|  2 | ASSETS:                                                                                                                                                              |                   |         |                   |          |    |         |
|  3 | Current assets:                                                                                                                                                      |                   |         |                   |          |    |         |
|  4 | Cash and cash equivalents                                                                                                                                            | $                 | 29,965  |                   |          | $  | 23,646  |
|  5 | Marketable securities                                                                                                                                                | 31,590            |         |                   | 24,658   |    |         |
|  6 | Accounts receivable, net                                                                                                                                             | 29,508            |         |                   | 28,184   |    |         |
|  7 | Vendor non-trade receivables                                                                                                                                         | 31,477            |         |                   | 32,748   |    |         |
|  8 | Inventories                                                                                                                                                          | 6,331             |         |                   | 4,946    |    |         |
|  9 | Other current assets                                                                                                                                                 | 14,695            |         |                   | 21,223   |    |         |
| 10 | Total current assets                                                                                                                                                 | 143,566           |         |                   | 135,405  |    |         |
| 12 | Non-current assets:                                                                                                                                                  |                   |         |                   |          |    |         |
| 13 | Marketable securities                                                                                                                                                | 100,544           |         |                   | 120,805  |    |         |
| 14 | Property, plant and equipment, net                                                                                                                                   | 43,715            |         |                   | 42,117   |    |         |
| 15 | Other non-current assets                                                                                                                                             | 64,758            |         |                   | 54,428   |    |         |
| 16 | Total non-current assets                                                                                                                                             | 209,017           |         |                   | 217,350  |    |         |
| 17 | Total assets                                                                                                                                                         | $                 | 352,583 |                   |          | $  | 352,755 |
| 19 | LIABILITIES AND SHAREHOLDERS' EQUITY:                                                                                                                                |                   |         |                   |          |    |         |
| 20 | Current liabilities:                                                                                                                                                 |                   |         |                   |          |    |         |
| 21 | Accounts payable                                                                                                                                                     | $                 | 62,611  |                   |          | $  | 64,115  |
| 22 | Other current liabilities                                                                                                                                            | 58,829            |         |                   | 60,845   |    |         |
| 23 | Deferred revenue                                                                                                                                                     | 8,061             |         |                   | 7,912    |    |         |
| 24 | Commercial paper                                                                                                                                                     | 5,985             |         |                   | 9,982    |    |         |
| 25 | Term debt                                                                                                                                                            | 9,822             |         |                   | 11,128   |    |         |
| 26 | Total current liabilities                                                                                                                                            | 145,308           |         |                   | 153,982  |    |         |
| 28 | Non-current liabilities:                                                                                                                                             |                   |         |                   |          |    |         |
| 29 | Term debt                                                                                                                                                            | 95,281            |         |                   | 98,959   |    |         |
| 30 | Other non-current liabilities                                                                                                                                        | 49,848            |         |                   | 49,142   |    |         |
| 31 | Total non-current liabilities                                                                                                                                        | 145,129           |         |                   | 148,101  |    |         |
| 32 | Total liabilities                                                                                                                                                    | 290,437           |         |                   | 302,083  |    |         |
| 34 | Commitments and contingencies                                                                                                                                        |                   |         |                   |          |    |         |
| 36 | Shareholders' equity:                                                                                                                                                |                   |         |                   |          |    |         |
| 37 | Common stock and additional paid-in capital, $0.00001 par value: 50,400,000 shares authorized; 15,550,061 and 15,943,425 shares issued and outstanding, respectively | 73,812            |         |                   | 64,849   |    |         |
| 38 | Accumulated deficit                                                                                                                                                  | (214)             |         |                   | (3,068)  |    |         |
| 39 | Accumulated other comprehensive loss                                                                                                                                 | (11,452)          |         |                   | (11,109) |    |         |
| 40 | Total shareholders' equity                                                                                                                                           | 62,146            |         |                   | 50,672   |    |         |
| 41 | Total liabilities and shareholders' equity                                                                                                                           | $                 | 352,583 |                   |          | $  | 352,755 |

See accompanying Notes to Consolidated Financial Statements.


Apple Inc. | 2023 Form 10-K | 30







Question: What are the liquidity metrics for Apple Inc. for the year 2023, and what do they indicate?
Answer: The liquidity metrics for Apple Inc. for the year 2023 are as follows:
- Current Assets: $143,566 million
- Current Liabilities: $145,308 million
- Cash and Cash Equivalents: $29,965 million
- Marketable Securities (Current): $31,590 million
The current ratio is calculated as Current Assets / Current Liabilities. For 2023, the current ratio is $143,566 million / $145,308 million = 0.99. A current ratio of less than 1 indicates that the company may not have enough current assets to cover its current liabilities. However, the company has significant cash and cash equivalents and marketable securities, which provide liquidity to meet short-term obligations. The quick ratio, which excludes inventories from current assets, is calculated as (Current Assets - Inventories) / Current Liabilities. For 2023, the quick ratio is ($143,566 million - $6,331 million) / $145,308 million = 0.95. This also indicates a slightly lower ability to cover current liabilities with liquid assets. Overall, while the current and quick ratios are slightly below 1, the company's substantial cash and marketable securities provide a strong liquidity position.