Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 1: 
PART I - FINANCIAL INFORMATION


Item 1.    Financial Statements


Apple Inc.


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per-share amounts)

|    |                                              |                    |        |                   |            |              |        |             |    |            |    |         |
|---:|:---------------------------------------------|:-------------------|:-------|:------------------|:-----------|:-------------|:-------|:------------|:---|:-----------|:---|:--------|
|  1 |                                              | Three Months Ended |        | Nine Months Ended |            |              |        |             |    |            |    |         |
|  2 |                                              | June 29,2024       |        | July 1,2023       |            | June 29,2024 |        | July 1,2023 |    |            |    |         |
|  3 | Net sales:                                   |                    |        |                   |            |              |        |             |    |            |    |         |
|  4 | Products                                     | $                  | 61,564 |                   |            | $            | 60,584 |             | $  | 224,908    | $  | 230,901 |
|  5 | Services                                     | 24,213             |        |                   | 21,213     |              |        | 71,197      |    | 62,886     |    |         |
|  6 | Total net sales                              | 85,777             |        |                   | 81,797     |              |        | 296,105     |    | 293,787    |    |         |
|  8 | Cost of sales:                               |                    |        |                   |            |              |        |             |    |            |    |         |
|  9 | Products                                     | 39,803             |        |                   | 39,136     |              |        | 140,667     |    | 146,696    |    |         |
| 10 | Services                                     | 6,296              |        |                   | 6,248      |              |        | 18,634      |    | 18,370     |    |         |
| 11 | Total cost of sales                          | 46,099             |        |                   | 45,384     |              |        | 159,301     |    | 165,066    |    |         |
| 12 | Gross margin                                 | 39,678             |        |                   | 36,413     |              |        | 136,804     |    | 128,721    |    |         |
| 14 | Operating expenses:                          |                    |        |                   |            |              |        |             |    |            |    |         |
| 15 | Research and development                     | 8,006              |        |                   | 7,442      |              |        | 23,605      |    | 22,608     |    |         |
| 16 | Selling, general and administrative          | 6,320              |        |                   | 5,973      |              |        | 19,574      |    | 18,781     |    |         |
| 17 | Total operating expenses                     | 14,326             |        |                   | 13,415     |              |        | 43,179      |    | 41,389     |    |         |
| 19 | Operating income                             | 25,352             |        |                   | 22,998     |              |        | 93,625      |    | 87,332     |    |         |
| 20 | Other income/(expense), net                  | 142                |        |                   | (265)      |              |        | 250         |    | (594)      |    |         |
| 21 | Income before provision for income taxes     | 25,494             |        |                   | 22,733     |              |        | 93,875      |    | 86,738     |    |         |
| 22 | Provision for income taxes                   | 4,046              |        |                   | 2,852      |              |        | 14,875      |    | 12,699     |    |         |
| 23 | Net income                                   | $                  | 21,448 |                   |            | $            | 19,881 |             | $  | 79,000     | $  | 74,039  |
| 25 | Earnings per share:                          |                    |        |                   |            |              |        |             |    |            |    |         |
| 26 | Basic                                        | $                  | 1.40   |                   |            | $            | 1.27   |             | $  | 5.13       | $  | 4.69    |
| 27 | Diluted                                      | $                  | 1.40   |                   |            | $            | 1.26   |             | $  | 5.11       | $  | 4.67    |
| 29 | Shares used in computing earnings per share: |                    |        |                   |            |              |        |             |    |            |    |         |
| 30 | Basic                                        | 15,287,521         |        |                   | 15,697,614 |              |        | 15,401,047  |    | 15,792,497 |    |         |
| 31 | Diluted                                      | 15,348,175         |        |                   | 15,775,021 |              |        | 15,463,175  |    | 15,859,263 |    |         |


See accompanying Notes to Condensed Consolidated Financial Statements.


Apple Inc. | Q3 2024 Form 10-Q | 1





, Apple Inc. 10-Q form for quarterly period ended 2024-06-29, page 4: 
Apple Inc.


CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

(In millions, except per-share amounts)
|    |                                                                        |                    |        |                   |          |              |        |             |    |          |    |        |
|---:|:-----------------------------------------------------------------------|:-------------------|:-------|:------------------|:---------|:-------------|:-------|:------------|:---|:---------|:---|:-------|
|  1 |                                                                        | Three Months Ended |        | Nine Months Ended |          |              |        |             |    |          |    |        |
|  2 |                                                                        | June 29,2024       |        | July 1,2023       |          | June 29,2024 |        | July 1,2023 |    |          |    |        |
|  3 | Total shareholders' equity, beginning balances                         | $                  | 74,194 |                   |          | $            | 62,158 |             | $  | 62,146   | $  | 50,672 |
|  5 | Common stock and additional paid-in capital:                           |                    |        |                   |          |              |        |             |    |          |    |        |
|  6 | Beginning balances                                                     | 78,815             |        |                   | 69,568   |              |        | 73,812      |    | 64,849   |    |        |
|  7 | Common stock issued                                                    | -                  |        |                   | -        |              |        | 752         |    | 690      |    |        |
|  8 | Common stock withheld related to net share settlement of equity awards | (1,920)            |        |                   | (1,595)  |              |        | (3,802)     |    | (3,310)  |    |        |
|  9 | Share-based compensation                                               | 2,955              |        |                   | 2,694    |              |        | 9,088       |    | 8,438    |    |        |
| 10 | Ending balances                                                        | 79,850             |        |                   | 70,667   |              |        | 79,850      |    | 70,667   |    |        |
| 12 | Retained earnings/(Accumulated deficit):                               |                    |        |                   |          |              |        |             |    |          |    |        |
| 13 | Beginning balances                                                     | 4,339              |        |                   | 4,336    |              |        | (214)       |    | (3,068)  |    |        |
| 14 | Net income                                                             | 21,448             |        |                   | 19,881   |              |        | 79,000      |    | 74,039   |    |        |
| 15 | Dividends and dividend equivalents declared                            | (3,864)            |        |                   | (3,811)  |              |        | (11,384)    |    | (11,207) |    |        |
| 16 | Common stock withheld related to net share settlement of equity awards | (428)              |        |                   | (858)    |              |        | (1,517)     |    | (1,988)  |    |        |
| 17 | Common stock repurchased                                               | (26,221)           |        |                   | (18,140) |              |        | (70,611)    |    | (56,368) |    |        |
| 18 | Ending balances                                                        | (4,726)            |        |                   | 1,408    |              |        | (4,726)     |    | 1,408    |    |        |
| 20 | Accumulated other comprehensive income/(loss):                         |                    |        |                   |          |              |        |             |    |          |    |        |
| 21 | Beginning balances                                                     | (8,960)            |        |                   | (11,746) |              |        | (11,452)    |    | (11,109) |    |        |
| 22 | Other comprehensive income/(loss)                                      | 544                |        |                   | (55)     |              |        | 3,036       |    | (692)    |    |        |
| 23 | Ending balances                                                        | (8,416)            |        |                   | (11,801) |              |        | (8,416)     |    | (11,801) |    |        |
| 25 | Total shareholders' equity, ending balances                            | $                  | 66,708 |                   |          | $            | 60,274 |             | $  | 66,708   | $  | 60,274 |
| 27 | Dividends and dividend equivalents declared per share or RSU           | $                  | 0.25   |                   |          | $            | 0.24   |             | $  | 0.73     | $  | 0.70   |

See accompanying Notes to Condensed Consolidated Financial Statements.


Apple Inc. | Q3 2024 Form 10-Q | 4







Question: How does Apple's Dividend Payout Ratio ratio for the three months ended June 29, 2024, compare to the three months ended July 1, 2023
Answer: The Dividend Payout Ratio for Apple Inc. is calculated as follows:

Dividend Payout Ratio = Dividends per Share / Earnings per Share

Latest Quarter:
Dividends per Share (June 29, 2024) = $0.25
Earnings per Share (June 29, 2024) = $1.40
Dividend Payout Ratio = 0.25 / 1.40 = 0.1786 or 17.86%
Previous Quarter:
Dividends per Share (Previous Quarter) = $0.24
Earnings per Share (Previous Quarter) = $1.27
Dividend Payout Ratio = 0.24 / 1.27 = 0.1889 or 18.89%
The Dividend Payout Ratio slightly decreased from 18.89% in the previous quarter to 17.86% in the latest quarter, indicating a slightly lower proportion of earnings paid out as dividends.