What is Apple's net debt to EBITDA?
Apple has a low net debt to EBITDA ratio of only 0.39. And its EBIT covers its interest expense a whopping 625 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse. On the other hand, Apple saw its EBIT drop by 4.0% in the last twelve months.
Generally, net debt-to-EBITDA ratios of less than 3 are considered acceptable. The lower the ratio, the higher the probability of the firm successfully paying and refinancing its debt.
Apple Debt to Equity Ratio: 1.458 for Dec.
Apple isn't just borrowing to benefit from inflation. They're strategically deploying this capital in areas that yield higher returns. One such area is stock buybacks. Over the past decade, Apple has reduced its outstanding shares from 26 billion to 16 billion, effectively boosting its stock price.
Tesla's operated at median net debt / ebitda of -0.9x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Tesla's net debt / ebitda peaked in December 2019 at 3.2x. Tesla's net debt / ebitda hit its 5-year low in December 2023 of -1.3x.
Analysis. Coca-Cola's net debt / ebitda for fiscal years ending December 2019 to 2023 averaged 2.4x. Coca-Cola's operated at median net debt / ebitda of 2.4x from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Coca-Cola's net debt / ebitda peaked in December 2020 at 2.8x.
Ratios higher than 4 or 5 typically set off alarm bells because this indicates that a company is less likely to be able to handle its debt burden, and thus is less likely to be able to take on the additional debt required to grow the business.
Debt Level: AAPL's net debt to equity ratio (47.2%) is considered high. Debt Coverage: AAPL's debt is well covered by operating cash flow (107.8%). Interest Coverage: AAPL's interest payments on its debt are well covered by EBIT (648.4x coverage).
If you look at Apple's 2023 10-K, you will see that its shareholder's equity at the end of September was $62.15 billion, up from $50.67 billion in 2022. Its total debt in 2023 was $123.93 billion, down from $132.48 billion in 2022.
Total debt on the balance sheet as of December 2023 : $108.04 B. According to Apple's latest financial reports the company's total debt is $108.04 B. A company's total debt is the sum of all current and non-current debts.
Is AAPL debt free?
Analysis. Apple's total debt for fiscal years ending September 2019 to 2023 averaged 124.7 billion. Apple's operated at median total debt of 123.9 billion from fiscal years ending September 2019 to 2023. Looking back at the last 5 years, Apple's total debt peaked in September 2021 at 136.5 billion.
The Vanguard Group was Apple's top shareholder as of January 2024 with more than 1.27 billion shares representing 8.27% of total shares. Arthur Levinson was Apple's top individual insider shareholder as of January 2024 with more than 4.5 million shares.
What Is Apple's Debt? You can click the graphic below for the historical numbers, but it shows that Apple had US$109.3b of debt in July 2023, down from US$119.7b, one year before. However, it does have US$62.5b in cash offsetting this, leading to net debt of about US$46.8b.
From a general point of view, having 1.715 of debt to EBITDA is considered low and generally acceptable by most industries standard. In some industries, even debt to EBITDA of 10 can be considered normal, while other fields may have a standard value of 3.
Cobb attributes Tesla's low debts to a few different things, with the first being its sleek lineup of cars, innovative technology, and its overall dedication to renewable energy and sustainability.
Enterprise value equals equity value plus net debt, where net debt is defined as debt and equivalents minus cash.
31, 2023.
| PepsiCo EBITDA Margin Historical Data | ||
|---|---|---|
| Date | TTM Revenue | EBITDA Margin |
| 2022-03-31 | $80.85B | 21.43% |
| 2021-12-31 | $79.47B | 18.09% |
| 2021-09-30 | $76.68B | 19.46% |
In most cases, a company's debt shouldn't exceed 60% (or a 0.6 ratio) long-term. Any company at this point usually has too much debt compared to its assets, suggesting that it's struggling to find income and make payments. Conversely, a company with less than 40% debt is usually in a good position.
The debt-to-EBITDA ratio is similar to the net debt-to-EBITDA ratio. The main difference is the net debt-to-EBITDA ratio subtracts cash and cash equivalents while the standard ratio does not.
Why do banks use EBITDA?
If you approach a bank for a business loan or another form of finance, it will likely use EBITDA to determine whether your business is able to repay its debts. This method of measuring a company first became popular in the 1980s, at the height of the leveraged buyout era.
Tesla, Inc. (TSLA) had Debt to Equity Ratio of 0.08 for the most recently reported fiscal year, ending 2023-12-31.
Total debt on the balance sheet as of December 2023 : $9.57 B. According to Tesla's latest financial reports the company's total debt is $9.57 B. A company's total debt is the sum of all current and non-current debts.
Apple net long-term debt for the twelve months ending December 31, 2023 was $-15.497B, a 3.02% decline year-over-year. Apple annual net long-term debt for 2023 was $-5.923B, a 45.24% increase from 2022. Apple annual net long-term debt for 2022 was $-4.078B, a 135.03% decline from 2021.
| Name | Equities | % |
|---|---|---|
| Vanguard Fiduciary Trust Co. 8.536 % | 1,318,064,349 | 8.536 % |
| BERKSHIRE HATHAWAY INC. 5.864 % | 905,560,000 | 5.864 % |
| BlackRock Advisors LLC 5.257 % | 811,835,633 | 5.257 % |
| STATE STREET CORPORATION 3.795 % | 586,052,057 | 3.795 % |
