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Reading ten years of financial statements: Apple's fiscal 2023 column against its Form 10-K (common size, growth, key figures)

Tool	Company Financial Statements
Source	Apple Inc. (2023). Form 10-K: Annual Report for the Fiscal Year Ended September 30, 2023. U.S. Securities and Exchange Commission, EDGAR accession 0000320193-23-000106, filed 3 November 2023. Consolidated statements of operations, balance sheets and statements of cash flows.
Level	Undergraduate

Problem

Load a company's annual statements as filed with the SEC and read one year three ways: in millions of dollars, as a percent of revenue or of total assets (common size), and as growth from the year before. For Apple's fiscal year ended 30 September 2023, check the column against the filed Form 10-K and work out the net margin, free cash flow, return on equity, net debt and a compound growth rate by hand.

Inputs to Enter

Company AAPL (the default); view Values, then Common size, then Growth; read the 2023 column
From the 10-K (US$ millions): revenue 383,285 (2022: 394,328; 2021: 365,817), cost of sales 214,137, research and development 29,915, net income 96,995, diluted EPS 6.13
Total assets 352,583, shareholders' equity 62,146 (2022: 50,672), commercial paper 5,985, current term debt 9,822, non-current term debt 95,281, cash 29,965, current marketable securities 31,590
Cash from operating activities 110,543, capital expenditures 10,959

Open the Company Financial Statements tool (loaded with this example)

Answers

Values: the tool's fiscal 2023 column equals the filing line by line (37 lines checked, among them gross margin 169,148, operating income 114,301, total liabilities 290,437, share repurchases 77,550)
Common size: cost of sales 214,137 / 383,285 = 55.9 %, research and development 7.8 %, net income 25.3 % of revenue; cash 8.5 % and equity 17.6 % of total assets
Growth: revenue 383,285 / 394,328 − 1 = −2.8 % (the filing prints (3) %); net income 96,995 / 99,803 − 1 = −2.8 %; diluted EPS 6.13 / 6.11 − 1 = +0.3 %
Free cash flow 110,543 − 10,959 = 99,584; return on equity 96,995 / [(62,146 + 50,672) / 2] = 171.9 %; total debt 5,985 + 9,822 + 95,281 = 111,088; net debt 111,088 − 29,965 − 31,590 = 49,533; debt to equity 1.79
Two-year revenue CAGR 2021 to 2023: (383,285 / 365,817)^(1/2) − 1 = 2.36 % a year
Stock split: Apple split four-for-one in August 2020. Fiscal 2017 and earlier are on file only as first stated (diluted EPS 9.21 for 2017), so the tool divides them by 4 (2.3025) to put them on today's share basis; fiscal 2018 on are already restated in the later filings (2.98). The EPS growth rate then runs over the whole range

Notes

The tool's default company is Apple; press Load. The page shows the ten latest fiscal years on file, so the 2023 column moves left as new years are added and the latest-year steps printed on the page are those of the newest year, not 2023. Figures are as filed and standardised by reporting tag; the filing is the authority. Net debt here does not subtract Apple's 100,544 of non-current marketable securities. The 2023 column is checked against the filed 10-K text and the calculations against an independent numpy implementation (test_financial_statements.php). A calculator for education and analysis, not investment advice.