Apple
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/4
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Owner earnings | $110.99bn | positive | ✓ |
| Return on equity | 151.9% | median 11.7% | ✓ |
| Debt to equity | 1.23x | median 0.79x | ✗ |
| Operating margin | 32.0% | median 15.0% | ✓ |
Passes 3 of 4. To be clear: Warren Buffett has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Return on capital employed | 80.9% | median 10.1% | ✓ |
| Cash conversion | 1.00x | median 1.78x | ✗ |
| Operating margin | 32.0% | median 15.0% | ✓ |
| Debt to equity | 1.23x | median 0.79x | ✗ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 3/3
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Return on capital employed | 80.9% | median 10.1% | ✓ |
| Return on equity | 151.9% | median 11.7% | ✓ |
| Operating margin | 32.0% | median 15.0% | ✓ |
Passes 3 of 3. To be clear: Charlie Munger has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 2/4
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Return on equity | 151.9% | median 11.7% | ✓ |
| Debt to equity | 1.23x | median 0.79x | ✗ |
| Cash conversion | 1.00x | median 1.78x | ✗ |
| Return on equity, sustained | 10 of 10 | 8 of 10 above median | ✓ |
Passes 2 of 4. To be clear: Chuck Akre has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 4/4
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Operating margin | 32.0% | median 15.0% | ✓ |
| Net margin | 26.9% | median 10.2% | ✓ |
| Return on capital employed | 80.9% | median 10.1% | ✓ |
| Operating margin, held or improving | 32.0% | 10-yr median 27.8% | ✓ |
Passes 4 of 4. To be clear: Philip Fisher has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 0/2
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Current ratio | 0.89x | median 1.25x | ✗ |
| Debt to equity | 1.23x | median 0.79x | ✗ |
Passes 0 of 2. To be clear: Walter Schloss has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 1/2
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Current ratio | 0.89x | 2.00x published | ✗ |
| Long-term debt to working capital | — | 1.00x published | — |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 1 of 2. To be clear: Benjamin Graham has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Return on capital employed | 80.9% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/2
| Measure | AAPL | Checked against | |
|---|---|---|---|
| Debt to equity | 1.23x | median 0.79x | ✗ |
| Net margin | 26.9% | median 10.2% | ✓ |
Passes 1 of 2. To be clear: Peter Lynch has never said anything about Apple. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 13.7% | whyThe figure most screeners publish. |
| Operating cash flow | 13.8% | whyAbsorbs working-capital swings that earnings do not. |
| Free cash flow | 15.6% | whyAfter maintaining the business. |
Spread between highest and lowest: 1.9 percentage points. Same filings, different denominators.
Coverage rating 77 / 100 — Adequate. ? Peer standing 40/50Direction 18/30Stability 18/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-09-27 | 15.6% |
| 2024-09-28 | 14.0% |
| 2023-09-30 | 15.1% |
| 2022-09-24 | 13.3% |
| 2021-09-25 | 15.6% |
| 2020-09-26 | 19.2% |
81% of the 42 technology here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $1.02 ÷ diluted EPS $7.46
- Operating cash flow — dividends paid $15,421m ÷ operating cash flow $111,482m
- Free cash flow — dividends paid $15,421m ÷ (operating cash flow $111,482m − capex $12,715m)
Where the figures came from
- 10-K filed 2025-10-31 · accession 0000320193-25-000079
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated adequate · when it files.
When this changes
Every figure above is recomputed whenever Apple files. The monthly letter carries what filed, what moved, and one finding computed across every company here.