Apple Invested Capital vs Free Cash Flow Analysis

AAPL Stock

USD 165.00 2.04 1.22%

Apple financial indicator trend analysis is way more than just evaluating Apple Inc prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Apple Inc is a good investment. Please check the relationship between Apple Invested Capital and its Free Cash Flow accounts. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Apple Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

Invested Capital vs Free Cash Flow

Invested Capital vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Apple Inc Invested Capital account and Free Cash Flow. At this time, the significance of the direction appears to have strong contrarian relationship.

The correlation between Apple's Invested Capital and Free Cash Flow is -0.66. Overlapping area represents the amount of variation of Invested Capital that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Apple Inc, assuming nothing else is changed. The correlation between historical values of Apple's Invested Capital and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Invested Capital of Apple Inc are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Invested Capital i.e., Apple's Invested Capital and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

-0.66

Relationship Direction	Negative
Relationship Strength	Weak

View All Relationships

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Apple Inc. There are two different methods for calculating Apple Inc invested capital: operating approach and financing approach. Understanding Apple invested capital allows investors to calculate measures of performance such as return on invested capital or return on capital employed.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Apple's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Apple Inc current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Apple Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

At this time, Apple's Selling General Administrative is quite stable compared to the past year. Enterprise Value Over EBITDA is expected to rise to 20.85 this year, although the value of Tax Provision will most likely fall to about 12 B.

	2021	2022	2023	2024 (projected)
Interest Expense	2.9B	3.9B	4.5B	4.7B
Depreciation And Amortization	11.1B	11.5B	13.2B	13.9B

Interest Expense Depreciation And Amortization

Apple fundamental ratios Correlations

	Total Assets	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Cash And Equivalents	Property Plant Equipment	Short Long Term Debt Total	Short Term Debt	Accounts Payable	Property Plant And Equipment Gross	Accumulated Depreciation
Total Assets		0.81	0.91	0.17	0.94	0.89	-0.2	0.78	0.97	0.68	0.81	0.88	-0.08	0.94	0.85	0.87	-0.52	0.94	0.95	0.78	0.94	0.93	0.92	0.93	0.89	0.85
Other Current Liab	0.81		0.97	-0.37	0.94	0.81	-0.68	0.74	0.71	0.97	0.59	0.97	-0.41	0.87	0.94	0.9	-0.84	0.93	0.87	0.74	0.94	0.85	0.8	0.94	0.97	0.97
Total Current Liabilities	0.91	0.97		-0.21	0.98	0.9	-0.55	0.75	0.84	0.9	0.66	0.99	-0.34	0.93	0.95	0.95	-0.78	0.98	0.92	0.75	0.98	0.92	0.91	0.99	0.98	0.96
Total Stockholder Equity	0.17	-0.37	-0.21		-0.13	-0.15	0.91	-0.1	0.3	-0.53	0.14	-0.23	0.79	-0.12	-0.29	-0.11	0.45	-0.17	-0.03	-0.1	-0.13	-0.13	0.0	-0.13	-0.28	-0.36
Property Plant And Equipment Net	0.94	0.94	0.98	-0.13		0.9	-0.48	0.82	0.86	0.87	0.77	0.97	-0.29	0.95	0.94	0.91	-0.7	0.98	0.97	0.82	1.0	0.95	0.93	0.98	0.98	0.96
Net Debt	0.89	0.81	0.9	-0.15	0.9		-0.47	0.69	0.85	0.74	0.72	0.84	-0.47	0.96	0.87	0.85	-0.57	0.95	0.87	0.69	0.9	0.98	0.93	0.9	0.91	0.89
Retained Earnings	-0.2	-0.68	-0.55	0.91	-0.48	-0.47		-0.41	-0.05	-0.8	-0.17	-0.55	0.85	-0.47	-0.6	-0.44	0.65	-0.51	-0.38	-0.41	-0.48	-0.47	-0.33	-0.47	-0.62	-0.68
Cash	0.78	0.74	0.75	-0.1	0.82	0.69	-0.41		0.64	0.71	0.91	0.75	-0.29	0.85	0.75	0.66	-0.35	0.82	0.91	1.0	0.82	0.82	0.72	0.73	0.84	0.83
Non Current Assets Total	0.97	0.71	0.84	0.3	0.86	0.85	-0.05	0.64		0.55	0.7	0.81	0.05	0.86	0.77	0.83	-0.45	0.87	0.85	0.64	0.86	0.85	0.88	0.88	0.79	0.74
Non Currrent Assets Other	0.68	0.97	0.9	-0.53	0.87	0.74	-0.8	0.71	0.55		0.54	0.91	-0.52	0.79	0.91	0.79	-0.83	0.86	0.8	0.71	0.87	0.78	0.7	0.86	0.93	0.94
Cash And Short Term Investments	0.81	0.59	0.66	0.14	0.77	0.72	-0.17	0.91	0.7	0.54		0.63	-0.17	0.84	0.64	0.58	-0.22	0.77	0.9	0.91	0.77	0.82	0.75	0.67	0.75	0.73
Net Receivables	0.88	0.97	0.99	-0.23	0.97	0.84	-0.55	0.75	0.81	0.91	0.63		-0.31	0.89	0.94	0.93	-0.81	0.95	0.91	0.75	0.97	0.88	0.87	0.99	0.96	0.95
Common Stock Shares Outstanding	-0.08	-0.41	-0.34	0.79	-0.29	-0.47	0.85	-0.29	0.05	-0.52	-0.17	-0.31		-0.4	-0.4	-0.24	0.4	-0.38	-0.24	-0.29	-0.29	-0.43	-0.29	-0.27	-0.43	-0.49
Non Current Liabilities Total	0.94	0.87	0.93	-0.12	0.95	0.96	-0.47	0.85	0.86	0.79	0.84	0.89	-0.4		0.9	0.86	-0.55	0.98	0.96	0.85	0.95	0.99	0.92	0.92	0.96	0.95
Inventory	0.85	0.94	0.95	-0.29	0.94	0.87	-0.6	0.75	0.77	0.91	0.64	0.94	-0.4	0.9		0.87	-0.71	0.94	0.88	0.75	0.94	0.89	0.82	0.94	0.95	0.95
Other Current Assets	0.87	0.9	0.95	-0.11	0.91	0.85	-0.44	0.66	0.83	0.79	0.58	0.93	-0.24	0.86	0.87		-0.74	0.91	0.86	0.66	0.91	0.86	0.9	0.94	0.9	0.88
Other Stockholder Equity	-0.52	-0.84	-0.78	0.45	-0.7	-0.57	0.65	-0.35	-0.45	-0.83	-0.22	-0.81	0.4	-0.55	-0.71	-0.74		-0.67	-0.57	-0.35	-0.7	-0.56	-0.6	-0.76	-0.71	-0.72
Total Liab	0.94	0.93	0.98	-0.17	0.98	0.95	-0.51	0.82	0.87	0.86	0.77	0.95	-0.38	0.98	0.94	0.91	-0.67		0.96	0.82	0.98	0.98	0.93	0.97	0.99	0.97
Total Current Assets	0.95	0.87	0.92	-0.03	0.97	0.87	-0.38	0.91	0.85	0.8	0.9	0.91	-0.24	0.96	0.88	0.86	-0.57	0.96		0.91	0.97	0.94	0.91	0.92	0.95	0.93
Cash And Equivalents	0.78	0.74	0.75	-0.1	0.82	0.69	-0.41	1.0	0.64	0.71	0.91	0.75	-0.29	0.85	0.75	0.66	-0.35	0.82	0.91		0.82	0.82	0.72	0.73	0.84	0.83
Property Plant Equipment	0.94	0.94	0.98	-0.13	1.0	0.9	-0.48	0.82	0.86	0.87	0.77	0.97	-0.29	0.95	0.94	0.91	-0.7	0.98	0.97	0.82		0.95	0.93	0.98	0.98	0.96
Short Long Term Debt Total	0.93	0.85	0.92	-0.13	0.95	0.98	-0.47	0.82	0.85	0.78	0.82	0.88	-0.43	0.99	0.89	0.86	-0.56	0.98	0.94	0.82	0.95		0.94	0.92	0.95	0.93
Short Term Debt	0.92	0.8	0.91	0.0	0.93	0.93	-0.33	0.72	0.88	0.7	0.75	0.87	-0.29	0.92	0.82	0.9	-0.6	0.93	0.91	0.72	0.93	0.94		0.92	0.89	0.85
Accounts Payable	0.93	0.94	0.99	-0.13	0.98	0.9	-0.47	0.73	0.88	0.86	0.67	0.99	-0.27	0.92	0.94	0.94	-0.76	0.97	0.92	0.73	0.98	0.92	0.92		0.96	0.94
Property Plant And Equipment Gross	0.89	0.97	0.98	-0.28	0.98	0.91	-0.62	0.84	0.79	0.93	0.75	0.96	-0.43	0.96	0.95	0.9	-0.71	0.99	0.95	0.84	0.98	0.95	0.89	0.96		1.0
Accumulated Depreciation	0.85	0.97	0.96	-0.36	0.96	0.89	-0.68	0.83	0.74	0.94	0.73	0.95	-0.49	0.95	0.95	0.88	-0.72	0.97	0.93	0.83	0.96	0.93	0.85	0.94	1.0

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Apple Account Relationship Matchups

Apple fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	323.9B	351.0B	352.8B	352.6B	405.5B	425.7B
Other Current Liab	42.7B	47.5B	60.8B	58.8B	67.7B	71.0B
Total Current Liabilities	105.4B	125.5B	154.0B	145.3B	167.1B	175.5B
Total Stockholder Equity	65.3B	63.1B	50.7B	62.1B	71.5B	40.2B
Property Plant And Equipment Net	36.8B	39.4B	42.1B	43.7B	50.3B	52.8B
Net Debt	74.4B	89.8B	96.4B	81.1B	93.3B	98.0B
Retained Earnings	15.0B	5.6B	(3.1B)	(214M)	(246.1M)	(233.8M)
Cash	38.0B	34.9B	23.6B	30.0B	34.5B	36.2B
Non Current Assets Total	180.2B	216.2B	217.4B	209.0B	240.4B	252.4B
Non Currrent Assets Other	42.5B	48.8B	54.4B	64.8B	74.5B	78.2B
Cash And Short Term Investments	90.9B	62.6B	48.3B	61.6B	70.8B	74.3B
Net Receivables	37.4B	51.5B	60.9B	61.0B	70.1B	73.6B
Common Stock Shares Outstanding	17.5B	16.9B	16.3B	15.8B	18.2B	21.0B
Liabilities And Stockholders Equity	323.9B	351.0B	352.8B	352.6B	405.5B	425.7B
Non Current Liabilities Total	153.2B	162.4B	148.1B	145.1B	166.9B	175.2B
Inventory	4.1B	6.6B	4.9B	6.3B	7.3B	7.6B
Other Current Assets	11.3B	14.1B	21.2B	14.7B	16.9B	17.7B
Other Stockholder Equity	(406M)	163M	(11.1B)	(11.5B)	(10.3B)	(9.8B)
Total Liab	258.5B	287.9B	302.1B	290.4B	334.0B	350.7B
Total Current Assets	143.7B	134.8B	135.4B	143.6B	165.1B	173.4B
Accumulated Other Comprehensive Income	(406M)	163M	(11.1B)	(11.5B)	(10.3B)	(9.8B)
Cash And Equivalents	38.0B	34.9B	23.6B	30.0B	34.5B	36.2B
Property Plant Equipment	36.8B	39.4B	42.1B	43.7B	50.3B	52.8B
Short Long Term Debt Total	112.4B	124.7B	120.1B	111.1B	127.8B	134.1B
Short Term Debt	13.8B	15.6B	21.1B	15.8B	18.2B	19.1B
Accounts Payable	42.3B	54.8B	64.1B	62.6B	72.0B	75.6B
Property Plant And Equipment Gross	103.5B	109.7B	114.5B	114.6B	131.8B	138.4B
Accumulated Depreciation	58.6B	66.8B	70.3B	72.3B	83.2B	87.4B
Common Stock Total Equity	45.2B	50.8B	57.4B	64.8B	74.6B	78.3B
Short Term Investments	52.9B	27.7B	24.7B	31.6B	36.3B	18.2B
Common Stock	50.8B	57.4B	64.8B	73.8B	84.9B	89.1B
Other Assets	34.0B	38.8B	54.4B	54.1B	62.2B	65.3B
Long Term Debt	98.7B	109.1B	99.0B	95.3B	109.6B	67.6B
Current Deferred Revenue	6.6B	7.6B	7.9B	8.1B	9.3B	5.5B
Other Liab	50.5B	46.1B	43.1B	49.1B	56.5B	59.3B
Net Tangible Assets	90.5B	65.3B	63.1B	50.7B	58.3B	95.6B
Retained Earnings Total Equity	45.9B	15.0B	5.6B	(3.1B)	(2.8B)	(2.6B)

Pair Trading with Apple

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Apple position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apple will appreciate offsetting losses from the drop in the long position's value.

Moving together with Apple Stock

0.77

EXTR

Extreme Networks Financial Report 24th of April 2024

Pair Corr

Moving against Apple Stock

0.86	NTAP	NetApp Inc Financial Report 29th of May 2024	Pair Corr
0.85	PSTG	Pure Storage Financial Report 29th of May 2024	Pair Corr
0.83	HPE	Hewlett Packard Ente Financial Report 4th of June 2024	Pair Corr
0.8	ZBRA	Zebra Technologies Financial Report 7th of May 2024	Pair Corr
0.79	MSI	Motorola Solutions Financial Report 2nd of May 2024	Pair Corr

The ability to find closely correlated positions to Apple could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Apple when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Apple - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Apple Inc to buy it.

The correlation of Apple is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Apple moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Apple Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Apple can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Apple Inc is a strong investment it is important to analyze Apple's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Apple's future performance. For an informed investment choice regarding Apple Stock, refer to the following important reports:

How To Invest In Apple

Details

Is Apple Stock a good investment?

Details

What is Apple's Net Worth?

Details

Largest Technology Hardware, Storage & Peripherals Companies

View

Largest Technology Hardware & Equipment Companies

View

Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Apple Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in american community survey.

You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.

Complementary Tools for Apple Stock analysis

When running Apple's price analysis, check to measure Apple's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Apple is operating at the current time. Most of Apple's value examination focuses on studying past and present price action to predict the probability of Apple's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Apple's price. Additionally, you may evaluate how the addition of Apple to your portfolios can decrease your overall portfolio volatility.

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Is Apple's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Apple. If investors know Apple will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Apple listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

0.16

Dividend Share

0.95

Earnings Share

6.43

Revenue Per Share

24.648

Quarterly Revenue Growth

0.021

The market value of Apple Inc is measured differently than its book value, which is the value of Apple that is recorded on the company's balance sheet. Investors also form their own opinion of Apple's value that differs from its market value or its book value, called intrinsic value, which is Apple's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Apple's market value can be influenced by many factors that don't directly affect Apple's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Apple's value and its price as these two are different measures arrived at by different means. Investors typically determine if Apple is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Apple's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

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Apple Invested Capital vs Free Cash Flow Analysis

Invested Capital vs Free Cash Flow

Invested Capital vs Free Cash Flow Correlation Analysis

Correlation Coefficient

Invested Capital

Free Cash Flow

Apple fundamental ratios Correlations

Apple Account Relationship Matchups

High Positive Relationship

High Negative Relationship

Apple fundamental ratios Accounts

Pair Trading with Apple

Moving together with Apple Stock

Moving against Apple Stock

Complementary Tools for Apple Stock analysis

COMMON DESTINATIONS

MAIN CATEGORIES

COMPANY

Property Plant Equipment	+ 1.0	Property Plant And Equipment Net
Cash And Equivalents	+ 1.0	Cash
Accumulated Depreciation	+ 1.0	Property Plant And Equipment Gross
Net Receivables	+ 0.99	Total Current Liabilities
Accounts Payable	+ 0.99	Total Current Liabilities
Accounts Payable	+ 0.99	Net Receivables

Other Stockholder Equity	- 0.84	Other Current Liab
Other Stockholder Equity	- 0.83	Non Currrent Assets Other
Other Stockholder Equity	- 0.81	Net Receivables
Non Currrent Assets Other	- 0.8	Retained Earnings
Other Stockholder Equity	- 0.78	Total Current Liabilities
Accounts Payable	- 0.76	Other Stockholder Equity