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





, Apple Inc. 10-K form for the fiscal year ended 2023-09-30, page 31: 
Apple Inc.


CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(In millions, except per-share amounts)
|    |                                                                        |                   |        |                   |          |                   |        |          |    |        |
|---:|:-----------------------------------------------------------------------|:------------------|:-------|:------------------|:---------|:------------------|:-------|:---------|:---|:-------|
|  1 |                                                                        | Years ended       |        |                   |          |                   |        |          |    |        |
|  2 |                                                                        | September 30,2023 |        | September 24,2022 |          | September 25,2021 |        |          |    |        |
|  3 | Total shareholders' equity, beginning balances                         | $                 | 50,672 |                   |          | $                 | 63,090 |          | $  | 65,339 |
|  5 | Common stock and additional paid-in capital:                           |                   |        |                   |          |                   |        |          |    |        |
|  6 | Beginning balances                                                     | 64,849            |        |                   | 57,365   |                   |        | 50,779   |    |        |
|  7 | Common stock issued                                                    | 1,346             |        |                   | 1,175    |                   |        | 1,105    |    |        |
|  8 | Common stock withheld related to net share settlement of equity awards | (3,521)           |        |                   | (2,971)  |                   |        | (2,627)  |    |        |
|  9 | Share-based compensation                                               | 11,138            |        |                   | 9,280    |                   |        | 8,108    |    |        |
| 10 | Ending balances                                                        | 73,812            |        |                   | 64,849   |                   |        | 57,365   |    |        |
| 12 | Retained earnings/(Accumulated deficit):                               |                   |        |                   |          |                   |        |          |    |        |
| 13 | Beginning balances                                                     | (3,068)           |        |                   | 5,562    |                   |        | 14,966   |    |        |
| 14 | Net income                                                             | 96,995            |        |                   | 99,803   |                   |        | 94,680   |    |        |
| 15 | Dividends and dividend equivalents declared                            | (14,996)          |        |                   | (14,793) |                   |        | (14,431) |    |        |
| 16 | Common stock withheld related to net share settlement of equity awards | (2,099)           |        |                   | (3,454)  |                   |        | (4,151)  |    |        |
| 17 | Common stock repurchased                                               | (77,046)          |        |                   | (90,186) |                   |        | (85,502) |    |        |
| 18 | Ending balances                                                        | (214)             |        |                   | (3,068)  |                   |        | 5,562    |    |        |
| 20 | Accumulated other comprehensive income/(loss):                         |                   |        |                   |          |                   |        |          |    |        |
| 21 | Beginning balances                                                     | (11,109)          |        |                   | 163      |                   |        | (406)    |    |        |
| 22 | Other comprehensive income/(loss)                                      | (343)             |        |                   | (11,272) |                   |        | 569      |    |        |
| 23 | Ending balances                                                        | (11,452)          |        |                   | (11,109) |                   |        | 163      |    |        |
| 25 | Total shareholders' equity, ending balances                            | $                 | 62,146 |                   |          | $                 | 50,672 |          | $  | 63,090 |
| 27 | Dividends and dividend equivalents declared per share or RSU           | $                 | 0.94   |                   |          | $                 | 0.90   |          | $  | 0.85   |

See accompanying Notes to Consolidated Financial Statements.


Apple Inc. | 2023 Form 10-K | 31







Question: How does Apple Inc.'s Return on Equity (ROE) for 2023 compare with that of 2022? 
Answer: Method 1: Using End-of-Year Shareholders' Equity
Return on Equity (ROE) is calculated using the formula:
ROE = (Net Income / Shareholder's Equity) * 100.

For 2023:
Net Income = $96,995 million
Shareholder's Equity = $62,146 million
ROE = ($96,995 million / $62,146 million) * 100 = 156.1%

For 2022:
Net Income = $99,803 million
Shareholder's Equity = $50,672 million
ROE = ($99,803 million / $50,672 million) * 100 = 196.9%

Analysis:
The ROE for Apple Inc. decreased from 196.9% in 2022 to 156.1% in 2023.

Method 2: Using Average Shareholders' Equity
Return on Equity (ROE) is calculated using the formula:
ROE = (Net Income / Average Shareholder's Equity) * 100.

For 2023:
Net Income = $96,995 million
Shareholder's Equity (2022) = $50,672 million
Shareholder's Equity (2023) = $62,146 million
Average Shareholder's Equity = ($50,672 million + $62,146 million) / 2 = $56,409 million
ROE = ($96,995 million / $56,409 million) * 100 = 172%

For 2022:
Net Income = $99,803 million
Shareholder's Equity (2021) = $63,090 million
Shareholder's Equity (2022) = $50,672 million
Average Shareholder's Equity = ($63,090 million + $50,672 million) / 2 = $56,881 million
ROE = ($99,803 million / $56,881 million) * 100 = 175%

Analysis:
The ROE for Apple Inc. decreased slightly from 175% in 2022 to 172% in 2023.