Weighted Average Cost of Capital Analysis

As of Jun 7, 2024
WACC Calculation
US Treasury Constant Maturity
Actual Capital Structure (Market Values) MARKET CAPITALIZATION 7-Jun-24 As of DATE Jun 7, 2024
Total Debt (billions), book value 2024 Q2 $ 104.6 Share Price, Close $ 196.89 Tenor Yield to maturity (%)
Market Capitalization of Equity (US$ billions) $ 3,019.84 Basic common shares, outstanding (billions) 2024 Q2 15.3 1M 5.47%
Total Capitalization $ 3,124.43 Market Capitalization (US$ billions) $ 3,019.84 2M 5.47%
3M 5.52%
Capital Structure Weights Percent Book Value (US$ millions) 4M 5.47%
Debt-to-Total Capitalization (%) 3.3% Total Debt $ 104,590 6M 5.40%
Equity-to-Total Capitalization (%) 96.7% 1Y 5.17%
100.0% 2Y 4.87%
Cost of Debt
Cost-of-Debt (%) 5.19% Average 2050-62
Notes: 3Y
5Y
4.65%
4.46%
Tax Rate (%) 21.0% Q2 2024 10-Q p.17 Calculate the weighted average cost of capital for 7Y 4.45%
After-tax Cost of Debt 4.10% Apple as of the last filing. For the cost of debt, use 10Y 4.43%
20Y 4.64%
Cost of Equity
the average YTM for fixed-rate USD bonds shown in 30Y 4.55%
Risk-free Rate (%) 4.55% 30-yr UST the worksheet "Bonds" based on the prices given
Equity Risk Premium (ERP) (%) 5.0% Assume 5% and settlement T+1 day. For the cost of equity, use https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
Beta 1.25 Yahoo Finance
an equity risk premium of 5.0%, the yield on the 30-
Cost of Equity (%) 10.80% year US Treasury bond for the risk-free rate, and the
beta from Yahoo Finance. For the weights, use the
WACC (%) 10.58%
total debt at book value and the common shares
issued and outstanding (basic) at the end of the most
recent quarter.
Issuer Issue Date Currency Amount Outstanding Coupon Maturity Date Price YTM USE YIELD
APPLE INC 11-May-2020 US Dollar 2,500,000,000 2.650 11-May-2050 63.698 5.221% DO NOT USE YIELDMAT
APPLE INC 20-Aug-2020 US Dollar 1,250,000,000 2.400 20-Aug-2050 60.430 5.176%
APPLE INC 08-Feb-2021 US Dollar 3,000,000,000 2.650 08-Feb-2051 63.062 5.236%
APPLE INC 05-Aug-2021 US Dollar 1,800,000,000 2.700 05-Aug-2051 63.370 5.245%
APPLE INC 08-Aug-2022 US Dollar 1,750,000,000 3.950 08-Aug-2052 80.911 5.256%
APPLE INC 10-May-2023 US Dollar 1,250,000,000 4.850 10-May-2053 95.551 5.147%
APPLE INC 20-Aug-2020 US Dollar 1,750,000,000 2.550 20-Aug-2060 60.331 4.902%
APPLE INC 08-Feb-2021 US Dollar 1,750,000,000 2.800 08-Feb-2061 60.940 5.194%
APPLE INC 05-Aug-2021 US Dollar 1,400,000,000 2.850 05-Aug-2061 61.220 5.226%
APPLE INC 08-Aug-2022 US Dollar 1,250,000,000 4.100 08-Aug-2062 80.416 5.301%

Settlement 10-Jun-2024 Average YTM 5.190%

Created by EDGAR Online, Inc.

APPLE INC.
BALANCE_SHEET
Form Type: 10-Q
Period End: Mar 30, 2024
Date Filed: May 03, 2024
Table Of Contents

Apple Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(In millions, except number of shares, which are reflected in thousands, and par
value)

ASSETS:
Current assets:
Cash and cash equivalents
Marketable securities
Accounts receivable, net
Vendor non-trade receivables
Inventories
Other current assets
Total current assets

Non-current assets:
Marketable securities
Property, plant and equipment, net
Other non-current assets
Total non-current assets
Total assets

LIABILITIES AND SHAREHOLDERS' EQUITY:

Current liabilities:
Accounts payable
Other current liabilities
Deferred revenue
Commercial paper
Term debt
Total current liabilities

Non-current liabilities:
Term debt
Other non-current liabilities
Total non-current liabilities
Total liabilities

Commitments and contingencies

Shareholders' equity:
Common stock and additional paid-in capital, $0.00001 par value:
50,400,000 shares authorized; 15,337,686 and 15,550,061 shares issued
and outstanding, respectively
Retained earnings/(Accumulated deficit)
Accumulated other comprehensive loss
Total shareholders' equity
Total liabilities and shareholders' equity

Total Shares
dited)
ds, and par

March 30, September 30,

2024 2023

$ 32,695 $ 29,965
34,455 31,590
21,837 29,508
19,313 31,477
6,232 6,331
13,884 14,695
128,416 143,566

95,187 100,544
43,546 43,715
70,262 64,758
208,995 209,017
$ 337,411 $ 352,583

$ 45,753 $ 62,611
57,298 58,829
8,012 8,061
1,997 5,985
10,762 9,822
123,822 145,308

91,831 95,281
47,564 49,848
139,395 145,129
263,217 290,437
 78,815 73,812
4,339 (214)
(8,960) (11,452)
74,194 62,146
$ 337,411 $ 352,583

15,337,686.00
Created by EDGAR Online, Inc.

APPLE INC.
INCOME_STATEMENT
Form Type: 10-Q
Period End: Mar 30, 2024
Date Filed: May 03, 2024
Table Of Contents

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

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

Three Months Ended

March 30,
2024
Net sales:
Products $ 66,886
Services 23,867
Total net sales 90,753

Cost of sales:
Products 42,424
Services 6,058
Total cost of sales 48,482
Gross margin 42,271

Operating expenses:
Research and development 7,903
Selling, general and administrative 6,468
Total operating expenses 14,371

Operating income 27,900

Other income/(expense), net 158
Income before provision for income taxes 28,058
Provision for income taxes 4,422
Net income $ 23,636

Earnings per share:

Basic $ 1.53
Diluted $ 1.53

Shares used in computing earnings per share:

Basic 15,405,856
Diluted 15,464,709
IONS (Unaudited)
thousands, and

Six Months Ended

April 1, March 30, April 1,
2023 2024 2023

$ 73,929 $ 163,344 $ 170,317

20,907 46,984 41,673
94,836 210,328 211,990

46,795 100,864 107,560

6,065 12,338 12,122
52,860 113,202 119,682
41,976 97,126 92,308

7,457 15,599 15,166

6,201 13,254 12,808
13,658 28,853 27,974

28,318 68,273 64,334

64 108 (329)
28,382 68,381 64,005
4,222 10,829 9,847
$ 24,160 $ 57,552 $ 54,158

$ 1.53 $ 3.72 $ 3.42

$ 1.52 $ 3.71 $ 3.41

15,787,154 15,457,810 15,839,939

15,847,050 15,520,675 15,901,384
Created by EDGAR Online, Inc.

APPLE INC.
STOCKHOLDERS_EQUITY
Form Type: 10-Q
Period End: Mar 30, 2024
Date Filed: May 03, 2024
Table Of Contents

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

(In millions, except per-share amounts)

Three Months Ended

March 30,
2024
Total shareholders' equity, beginning balances $ 74,100

Common stock and additional paid-in capital:

Beginning balances 75,236
Common stock issued 752
Common stock withheld related to net share
settlement of equity awards (222)
Share-based compensation 3,049
Ending balances 78,815

Retained earnings/(Accumulated deficit):

Beginning balances 8,242
Net income 23,636
Dividends and dividend equivalents declared (3,746)
Common stock withheld related to net share
settlement of equity awards (71)
Common stock repurchased (23,722)
Ending balances 4,339

Accumulated other comprehensive income/(loss):

Beginning balances (9,378)
Other comprehensive income/(loss) 418
Ending balances (8,960)

Total shareholders' equity, ending balances $ 74,194

Dividends and dividend equivalents declared per

share or RSU $ 0.24
 Six Months Ended
April 1, March 30, April 1,
2023 2024 2023
$ 56,727 $ 62,146 $ 50,672

66,399 73,812 64,849

690 752 690

(281) (1,882) (1,715)

2,760 6,133 5,744
69,568 78,815 69,568

3,240 (214) (3,068)

24,160 57,552 54,158
(3,684) (7,520) (7,396)

(152) (1,089) (1,130)

(19,228) (44,390) (38,228)
4,336 4,339 4,336

(12,912) (11,452) (11,109)

1,166 2,492 (637)
(11,746) (8,960) (11,746)

$ 62,158 $ 74,194 $ 62,158

$ 0.23 $ 0.48 $ 0.46

Created by EDGAR Online, Inc.

APPLE INC.
CASH_FLOW
Form Type: 10-Q
Period End: Mar 30, 2024
Date Filed: May 03, 2024
Table Of Contents
Created by EDGAR Online, Inc.

APPLE INC.
CASH_FLOW
Form Type: 10-Q
Period End: Mar 30, 2024
Date Filed: May 03, 2024
Table Of Contents

Apple Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(In millions)

Cash, cash equivalents and restricted cash, beginning balances

Operating activities:
Net income
Adjustments to reconcile net income to cash generated by
operating activities:
Depreciation and amortization
Share-based compensation expense

Other
Changes in operating assets and liabilities:
Accounts receivable, net
Vendor non-trade receivables
Inventories
Other current and non-current assets
Accounts payable
Other current and non-current liabilities
Cash generated by operating activities

Investing activities:
Purchases of marketable securities
Proceeds from maturities of marketable securities
Proceeds from sales of marketable securities
Payments for acquisition of property, plant and equipment

Other
Cash generated by investing activities

Financing activities:
Payments for taxes related to net share settlement of equity
awards
Payments for dividends and dividend equivalents
Repurchases of common stock
Repayments of term debt
Repayments of commercial paper, net
Other
Cash used in financing activities

Increase in cash, cash equivalents and restricted cash

Cash, cash equivalents and restricted cash, ending balances

Supplemental cash flow disclosure:

Cash paid for income taxes, net
Six Months Ended
March 30, April 1,
2024 2023
$ 30,737 $ 24,977

57,552 54,158

5,684 5,814
5,961 5,591

(1,971) (1,732)

7,727 9,596
12,164 14,785
53 (2,548)
(4,438) (4,092)
(16,710) (20,764)
(3,437) 1,757
62,585 62,565

(25,042) (11,197)
27,462 17,124
4,314 1,897
(4,388) (6,703)

(729) (247)
1,617 874

(2,875) (2,734)
(7,535) (7,418)
(43,344) (39,069)
 (3,150) (3,651)
(3,982) (7,960)
(132) (455)
(61,018) (61,287)

3,184 2,152
$ 33,921 $ 27,129

$ 14,531 $ 4,894