Aureus
AExcellent

Apple Inc.(AAPL)

A

Financial data as of Sep 30, 2025Improving · Technology

FCF Margin20.6%Free Cash Flow / Revenue
Cash Conversion99.5%Operating CF / Net Income
Free Cash Flow$98.8B
Revenue$416.2B
Net Cash-$62.7BNet debt position
Debt / FCF1.1xManageable debt load
Current Ratio0.89Tight short-term liquidity
YoY FCF Growth+102.3%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseB
→
+0.5Healthy FCF margin with manageable debt (20.6%, 1.1x)
→
-0.5Current ratio below 1.0 (0.89) (reduced — strong FCF covers short-term obligations)
→
+1Strong YoY FCF growth (102.3% YoY)
→
+1Very low debt-to-FCF ratio (1.1x)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (20.6%)
  • Very low debt relative to cash flow (1.1x)
  • Strong YoY FCF growth (+102.3%)

Concerns

  • Net debt position ($62.7B) — 1.1x FCF, manageable
  • Current ratio below 1.0 — tight short-term liquidity
SBC-adjusted FCF used — $12.9B stock-based compensation (13% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin20.6%
Net Margin26.9%
Operating CF Margin26.8%
CapEx Ratio3.1%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$62.7BNet debt position
Debt / FCF1.1xManageable debt load
Current Ratio0.89Tight liquidity
Debt / Equity1.34Moderate leverage

Quarterly FCF Trend

+102.3% YoYImproving (+102.3%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameApple Inc.
SectorTechnology
Free Cash Flow$98.8B
Revenue$416.2B
Net Income$112.0B
Operating Cash Flow$111.5B
Capital Expenditure$12.7B
FCF Margin20.6%
Cash Conversion Rate99.5%
Net Margin26.9%
Total Debt$98.7B
Total Cash$35.9B
Net Cash-$62.7B
Current Ratio0.89
Debt / Equity1.34
Debt / FCF1.1x
YoY FCF Growth+102.3%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateSep 30, 2025
GradeA
Data SourceYahoo Finance

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