Apple Inc (AAPL) earned our Attractive Rating. To get this rating, AAPL achieved excellent quality-of-earnings (1) positive and rising economic profits (as distinct from accounting profits**) and (2) a cheap valuation. As shown in our free report on AAPL, the company’s ROIC (at 136%) is in the Top Quintile of the 3000+ companies we cover.
HIDDEN GEM: AAPL’s economic earnings rose more than its accounting earnings during the last fiscal year. Economic earnings rose by $3,576 while accounting earnings rose by $3,401. And the company has $31,849mm in Excess Cash, a reflection of the strong profitability of the business .
See Appendix 4 to learn how AAPL increased NOPAT by and increased its NOPAT Margin as expenses grew more slowly than revenue. See Appendix 5 for details on its Invested Capital. Appendix 7 (in the Return on Invested Capital (ROIC) section) shows how the improved NOPAT Margin and Invested Capital Turns result in an increase in ROIC (to 135% from 104%) and Economic Profit, which rose by $3,576 while accounting earnings rose by $3,401 during its last fiscal year.