Apple Inc. 10-Q form for quarterly period ended 2024-03-30, 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 |        | Six Months Ended |            |               |        |              |    |            |    |         |
|  2 |                                              | March 30,2024      |        | April 1,2023     |            | March 30,2024 |        | April 1,2023 |    |            |    |         |
|  3 | Net sales:                                   |                    |        |                  |            |               |        |              |    |            |    |         |
|  4 | Products                                     | $                  | 66,886 |                  |            | $             | 73,929 |              | $  | 163,344    | $  | 170,317 |
|  5 | Services                                     | 23,867             |        |                  | 20,907     |               |        | 46,984       |    | 41,673     |    |         |
|  6 | Total net sales                              | 90,753             |        |                  | 94,836     |               |        | 210,328      |    | 211,990    |    |         |
|  8 | Cost of sales:                               |                    |        |                  |            |               |        |              |    |            |    |         |
|  9 | Products                                     | 42,424             |        |                  | 46,795     |               |        | 100,864      |    | 107,560    |    |         |
| 10 | Services                                     | 6,058              |        |                  | 6,065      |               |        | 12,338       |    | 12,122     |    |         |
| 11 | Total cost of sales                          | 48,482             |        |                  | 52,860     |               |        | 113,202      |    | 119,682    |    |         |
| 12 | Gross margin                                 | 42,271             |        |                  | 41,976     |               |        | 97,126       |    | 92,308     |    |         |
| 14 | Operating expenses:                          |                    |        |                  |            |               |        |              |    |            |    |         |
| 15 | Research and development                     | 7,903              |        |                  | 7,457      |               |        | 15,599       |    | 15,166     |    |         |
| 16 | Selling, general and administrative          | 6,468              |        |                  | 6,201      |               |        | 13,254       |    | 12,808     |    |         |
| 17 | Total operating expenses                     | 14,371             |        |                  | 13,658     |               |        | 28,853       |    | 27,974     |    |         |
| 19 | Operating income                             | 27,900             |        |                  | 28,318     |               |        | 68,273       |    | 64,334     |    |         |
| 20 | Other income/(expense), net                  | 158                |        |                  | 64         |               |        | 108          |    | (329)      |    |         |
| 21 | Income before provision for income taxes     | 28,058             |        |                  | 28,382     |               |        | 68,381       |    | 64,005     |    |         |
| 22 | Provision for income taxes                   | 4,422              |        |                  | 4,222      |               |        | 10,829       |    | 9,847      |    |         |
| 23 | Net income                                   | $                  | 23,636 |                  |            | $             | 24,160 |              | $  | 57,552     | $  | 54,158  |
| 25 | Earnings per share:                          |                    |        |                  |            |               |        |              |    |            |    |         |
| 26 | Basic                                        | $                  | 1.53   |                  |            | $             | 1.53   |              | $  | 3.72       | $  | 3.42    |
| 27 | Diluted                                      | $                  | 1.53   |                  |            | $             | 1.52   |              | $  | 3.71       | $  | 3.41    |
| 29 | Shares used in computing earnings per share: |                    |        |                  |            |               |        |              |    |            |    |         |
| 30 | Basic                                        | 15,405,856         |        |                  | 15,787,154 |               |        | 15,457,810   |    | 15,839,939 |    |         |
| 31 | Diluted                                      | 15,464,709         |        |                  | 15,847,050 |               |        | 15,520,675   |    | 15,901,384 |    |         |


See accompanying Notes to Condensed Consolidated Financial Statements.


Apple Inc. | Q2 2024 Form 10-Q | 1





, Apple Inc. 10-Q form for quarterly period ended 2024-03-30, page 4: 
Apple Inc.


CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

(In millions, except per-share amounts)
|    |                                                                        |                    |        |                  |          |               |        |              |    |          |    |        |
|---:|:-----------------------------------------------------------------------|:-------------------|:-------|:-----------------|:---------|:--------------|:-------|:-------------|:---|:---------|:---|:-------|
|  1 |                                                                        | Three Months Ended |        | Six Months Ended |          |               |        |              |    |          |    |        |
|  2 |                                                                        | March 30,2024      |        | April 1,2023     |          | March 30,2024 |        | April 1,2023 |    |          |    |        |
|  3 | Total shareholders' equity, beginning balances                         | $                  | 74,100 |                  |          | $             | 56,727 |              | $  | 62,146   | $  | 50,672 |
|  5 | Common stock and additional paid-in capital:                           |                    |        |                  |          |               |        |              |    |          |    |        |
|  6 | Beginning balances                                                     | 75,236             |        |                  | 66,399   |               |        | 73,812       |    | 64,849   |    |        |
|  7 | Common stock issued                                                    | 752                |        |                  | 690      |               |        | 752          |    | 690      |    |        |
|  8 | Common stock withheld related to net share settlement of equity awards | (222)              |        |                  | (281)    |               |        | (1,882)      |    | (1,715)  |    |        |
|  9 | Share-based compensation                                               | 3,049              |        |                  | 2,760    |               |        | 6,133        |    | 5,744    |    |        |
| 10 | Ending balances                                                        | 78,815             |        |                  | 69,568   |               |        | 78,815       |    | 69,568   |    |        |
| 12 | Retained earnings/(Accumulated deficit):                               |                    |        |                  |          |               |        |              |    |          |    |        |
| 13 | Beginning balances                                                     | 8,242              |        |                  | 3,240    |               |        | (214)        |    | (3,068)  |    |        |
| 14 | Net income                                                             | 23,636             |        |                  | 24,160   |               |        | 57,552       |    | 54,158   |    |        |
| 15 | Dividends and dividend equivalents declared                            | (3,746)            |        |                  | (3,684)  |               |        | (7,520)      |    | (7,396)  |    |        |
| 16 | Common stock withheld related to net share settlement of equity awards | (71)               |        |                  | (152)    |               |        | (1,089)      |    | (1,130)  |    |        |
| 17 | Common stock repurchased                                               | (23,722)           |        |                  | (19,228) |               |        | (44,390)     |    | (38,228) |    |        |
| 18 | Ending balances                                                        | 4,339              |        |                  | 4,336    |               |        | 4,339        |    | 4,336    |    |        |
| 20 | Accumulated other comprehensive income/(loss):                         |                    |        |                  |          |               |        |              |    |          |    |        |
| 21 | Beginning balances                                                     | (9,378)            |        |                  | (12,912) |               |        | (11,452)     |    | (11,109) |    |        |
| 22 | Other comprehensive income/(loss)                                      | 418                |        |                  | 1,166    |               |        | 2,492        |    | (637)    |    |        |
| 23 | Ending balances                                                        | (8,960)            |        |                  | (11,746) |               |        | (8,960)      |    | (11,746) |    |        |
| 25 | Total shareholders' equity, ending balances                            | $                  | 74,194 |                  |          | $             | 62,158 |              | $  | 74,194   | $  | 62,158 |
| 27 | Dividends and dividend equivalents declared per share or RSU           | $                  | 0.24   |                  |          | $             | 0.23   |              | $  | 0.48     | $  | 0.46   |

See accompanying Notes to Condensed Consolidated Financial Statements.


Apple Inc. | Q2 2024 Form 10-Q | 4







Question: What is the Return on Equity (ROE) for Apple Inc. for the six months ended March 30, 2024?
Answer: The Return on Equity (ROE) for Apple Inc. for the six months ended March 30, 2024, is calculated as follows:
ROE = (Net Income / Shareholder's Equity) * 100
Net Income (six months ended March 30, 2024) = $57,552 million
Shareholder's Equity (ending balance) = $74,194 million
ROE = (57,552 / 74,194) * 100 = 77.56%