KabuDo

AAPL Consumer Electronics

Apple Inc.

Apple is a Cupertino, California-based designer of smartphones, personal computers, tablets, and wearables — iPhone, Mac, iPad, Apple Watch, AirPods, Vision Pro — and a seller of related services: the App Store, advertising, iCloud, AppleCare, Apple Music/TV+, and Apple Pay/Card. FY2025 revenue was $416.2 billion, of which iPhone alone was 50% and Services 26%. Apple manages the business by geography — its five reportable segments are the Americas, Europe (which includes India, the Middle East, and Africa), Greater China, Japan, and Rest of Asia Pacific — and designs almost everything itself while outsourcing the large majority of manufacturing to partners primarily in China mainland, India, Japan, South Korea, Taiwan, and Vietnam.

Last updated

Analysis last edited: September 29, 2026 · Financial data fetched: September 30, 2026 14:27 (SEC EDGAR) · Source 10-K filed: October 31, 2025

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

01

Company profile

Legal name
Apple Inc.
Headquarters
CUPERTINO, CA
Incorporated in
California
Fiscal year end
09/26
Exchange & ticker
NASDAQ: AAPL
Industry
Consumer Electronics
CIK
320193

Workforce (as of FY2025 year-end)

  • Employees

    166,000

Source: Form 10-K (FY2025) cover page and business description

02

Earnings calendar

When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.

Next report

Q4 FY2026

Quarter end: September 2026. In past years, Q4 results were released 33 days after quarter end (Oct 30, 2025; Oct 31, 2024; Nov 2, 2023). No date has been announced in the sources this site uses.

Reporting pattern

  • Fiscal year ends around September 26.
  • Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
  • Earnings releases came 33 days after quarter end over the last 12 quarters.
QuarterQuarter endedEarnings release (8-K)Report filed (10-Q / 10-K)
Q3 FY2026Jun 27, 2026Jul 30, 2026 (+33 days)Jul 31, 2026 10-Q (+34 days)
Q2 FY2026Mar 28, 2026Apr 30, 2026 (+33 days)May 1, 2026 10-Q (+34 days)
Q1 FY2026Dec 27, 2025Jan 29, 2026 (+33 days)Jan 30, 2026 10-Q (+34 days)
Q4 FY2025Sep 27, 2025Oct 30, 2025 (+33 days)Oct 31, 2025 10-K (+34 days)
Q3 FY2025Jun 28, 2025Jul 31, 2025 (+33 days)Aug 1, 2025 10-Q (+34 days)
Q2 FY2025Mar 29, 2025May 1, 2025 (+33 days)May 2, 2025 10-Q (+34 days)
Q1 FY2025Dec 28, 2024Jan 30, 2025 (+33 days)Jan 31, 2025 10-Q (+34 days)
Q4 FY2024Sep 28, 2024Oct 31, 2024 (+33 days)Nov 1, 2024 10-K (+34 days)
Q3 FY2024Jun 29, 2024Aug 1, 2024 (+33 days)Aug 2, 2024 10-Q (+34 days)
Q2 FY2024Mar 30, 2024May 2, 2024 (+33 days)May 3, 2024 10-Q (+34 days)
Q1 FY2024Dec 30, 2023Feb 1, 2024 (+33 days)Feb 2, 2024 10-Q (+34 days)
Q4 FY2023Sep 30, 2023Nov 2, 2023 (+33 days)Nov 3, 2023 10-K (+34 days)

Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. Fiscal years are labeled by the calendar year in which they end.

03

Flagship products & services

  • Products

    iPhone

    Examples: iPhone 17 Pro, iPhone Air, iPhone 17, iPhone 16, iPhone 16e

    Smartphones on iOS — $209.6B in FY2025, 50% of total net sales. FY2025 growth came from Pro models.

  • Products

    Mac

    Examples: MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro

    Laptops and desktops on macOS — $33.7B in FY2025, up 12% year over year, the fastest-growing product category.

  • Products

    iPad

    Examples: iPad Pro, iPad Air, iPad, iPad mini

    Tablets on iPadOS — $28.0B in FY2025.

  • Products

    Wearables, Home and Accessories

    Examples: Apple Watch, AirPods, Beats, Apple Vision Pro, Apple TV 4K, HomePod

    $35.7B in FY2025, down from $39.8B in FY2023 — the only category that declined in both FY2024 and FY2025.

  • Services

    Services

    Examples: App Store, advertising, iCloud, AppleCare, Apple Music, Apple TV, Apple Arcade, Apple Pay, Apple Card

    $109.2B in FY2025 at a 75.4% gross margin; growth led by advertising, the App Store, and cloud services.

Product lines and category revenue are from the FY2025 Form 10-K's Item 1 business description and MD&A (net sales by category).

04

Recent strategic focus

FY2025 capital return and one-off items affecting the five-year figures, from the 10-K and SEC EDGAR XBRL data.

  1. Returning roughly all of its earnings to shareholders

    FY2025 buybacks ($90.7B) plus dividends ($15.4B) came to $106.1B, about 95% of net income ($112.0B); in FY2024 they exceeded it ($94.9B + $15.2B vs. $93.7B). A new $100B repurchase program was announced in May 2025, and the quarterly dividend rose to $0.26. This steady payout is why shares outstanding keep falling and book equity stays small.

    Source: Form 10-K MD&A Capital Return Program; cash flow statement

  2. FY2024 net income depressed by a one-time tax charge

    FY2024 net income ($93.7B) and diluted EPS ($6.08) were lower than FY2023 despite higher operating income, because of the $10.2B net State Aid tax charge. Adjusted for that, FY2024 net income would have been roughly $104B — so FY2025's 19% net income growth overstates underlying growth.

    Source: Form 10-K Note 7 Income Taxes; this site's calculation

  3. Interest expense no longer disclosed separately

    Apple stopped reporting interest expense as a separate line from FY2024 onward (it's netted within other income/(expense)), so this site's WACC uses the risk-free rate as a proxy for Apple's cost of debt in those years.

    Source: SEC EDGAR XBRL — InterestExpense not tagged in the FY2024–FY2025 10-Ks

Capex ÷ D&A (FY2025)

1.09x

Roughly matches depreciation — mostly maintenance/replacement

formulacapital expenditures ÷ depreciation & amortization

e.g.$12,715M ÷ $11,698M = 1.09x

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

R&D-to-revenue ratio (FY2025)

8.3%

formularesearch & development expense ÷ revenue × 100

e.g.$34,550M ÷ $416,161M × 100 = 8.3%

termsResearch & development (R&D) · Revenue (net sales)

M&A spend (5-year total)

$339M

Latest year: $0

Cash-flow-statement spending on acquisitions, net of cash acquired

Where the money goes, over time

Unit: $M. Capex went from $11.09B in FY2021 to $12.72B in FY2025

  • Capex
  • R&D
  • M&A spend

formulacapital expenditures ÷ depreciation & amortization

termsCapital expenditures (capex) · Depreciation & amortization (D&A)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

05

Key figures at a glance

FY2021–FY2025, 5 years.

Revenue (FY2025)

$416.16B

As reported in the 10-K

Revenue CAGR (4 years)

+3.3%

formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1

e.g.($416,161M ÷ $365,817M) ^ (1÷4) − 1 = 3.3%

termsCAGR · ^ (exponent) · Revenue (net sales)

Operating margin (FY2025)

32.0%▲favorable

+2.2pt vs. 4 years ago

formulaoperating income ÷ revenue × 100

e.g.$133,050M ÷ $416,161M × 100 = 32.0%

termsOperating income · Revenue (net sales)

ROE (FY2025)

171.4%▲favorable

5-year average: 165.3%

As reported in the 10-K

P/B (FY2025 end)

51.18x

formulaP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)

e.g.34.2x × $7.46 ÷ $4.99 = 51.18x

termsP/B · P/E · EPS · BVPS

Period-end (fiscal year-end) value, not today's P/B

EV/EBITDA (FY2025 end)

26.9x

formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)

e.g.($3,835,222M + $98,657M − $35,934M) ÷ ($133,050M + $11,698M) = 26.9x

termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)

Period-end (fiscal year-end) value, not today's multiple

  • ―

    Revenue grew +3.3% a year over 4 years (modest growth)

    From $365.82B in FY2021 to $416.16B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.

  • ▲

    Operating margin improved: 29.8% → 32.0%

    How much operating profit is left per $100 of revenue. It moved +2.2 points over 4 years — pricing power, cost control, and product mix all show up here.

  • ▼

    Equity ratio is 20.5% (relatively heavy reliance on debt)

    The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).

  • ▲

    Free cash flow was positive in 5 of 5 years

    Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.

  • ▲

    ROE averaged 165.3% over 5 years (latest: 171.4%)

    How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.

06

Business model

Products (iPhone, Mac, iPad, Wearables/Home/Accessories)

Apple designs the hardware, the operating system, and much of the software for its devices, then has outsourcing partners manufacture and assemble them. It sells them directly through its own retail and online stores (40% of FY2025 net sales across products and services) and indirectly through cellular carriers and other resellers (60%). Each device is a one-time sale.

Products (iPhone, Mac, iPad, Wearables/Home/Accessories): how money and goods flow
  1. 01 what it draws on

    Inputs & resources

    • In-house hardware, chip, and OS design (R&D spend of $34.6B in FY2025, 8% of net sales)
    • Outsourcing partners for component manufacturing and final assembly, located primarily in China mainland, India, Japan, South Korea, Taiwan, and Vietnam
    • Custom and single-source components from suppliers in the U.S., Asia, and Europe
  2. 02 what it does

    Activities

    • Designs iPhone, Mac, iPad, Apple Watch, AirPods, Vision Pro, and home devices, plus iOS/macOS/iPadOS/watchOS/visionOS
    • Manages an outsourced global supply chain ($56.2B of manufacturing purchase obligations as of fiscal year-end)
    • Annual product launch cycle (e.g. iPhone 17 / iPhone Air / Apple Watch Series 11 announced in Q4 FY2025)
  3. 03 who it serves

    Customers

    • Consumers
    • Small and mid-sized businesses, education, enterprise, and government
    • Cellular carriers and resellers who resell to end customers
  4. 04 how money comes in

    How it earns

    • One-time device sales (iPhone $209.6B, Mac $33.7B, iPad $28.0B, Wearables/Home/Accessories $35.7B in FY2025)
    • Mix shift toward higher-priced models (FY2025 iPhone growth came from Pro models)

Products (iPhone, Mac, iPad, Wearables/Home/Accessories): how it makes money

  • Products were $307.0B of FY2025 net sales (74%) at a 36.8% gross margin, roughly half the Services gross margin percentage.
  • iPhone alone was 50.4% of total FY2025 net sales — Apple's revenue is still dominated by a single product line.
  • Wearables, Home and Accessories has shrunk two years running, from $39.8B (FY2023) to $35.7B (FY2025), while Mac grew 12% in FY2025.
  • Products gross margin percentage slipped from 37.2% to 36.8% in FY2025; the 10-K attributes the decline partly to new U.S. tariffs beginning in Q2 FY2025.

Services

Sells services used on Apple's devices: advertising and search-licensing arrangements, the App Store (a platform for third-party apps and digital content), subscriptions (Apple Music, Apple TV, Arcade, Fitness+, News+, iCloud), AppleCare service and support, and payment services (Apple Pay, Apple Card). It carries roughly double the gross margin percentage of Products (75.4% vs. 36.8% in FY2025).

Services: how money and goods flow
  1. 01 what it draws on

    Inputs & resources

    • Apple's own operating systems and devices, on which these services run
    • Third-party app developers and content licensors
    • Search-distribution licensing partners (Google and others)
    • Data centers and cloud infrastructure
  2. 02 what it does

    Activities

    • Operates the App Store and reviews/distributes third-party apps
    • Runs subscription services and produces original content (Apple TV)
    • Sells advertising on its own platforms and licenses default-search placement to third parties
    • Provides AppleCare support/repair and Apple Pay/Apple Card payment services
  3. 03 who it serves

    Customers

    • Apple device owners (subscriptions, AppleCare, iCloud)
    • App developers (who pay commissions on App Store sales)
    • Advertisers and search-engine licensees
  4. 04 how money comes in

    How it earns

    • App Store commissions
    • Advertising and search-licensing fees
    • Monthly/annual subscription fees
    • AppleCare fees and payment-services revenue

Services: how it makes money

  • Services net sales grew from $85.2B (FY2023) to $109.2B (FY2025) — +13% and +14% in the last two years, versus low-single-digit Products growth.
  • Services gross margin reached 75.4% in FY2025 (up from 70.8% in FY2023), so Services generated 42% of Apple's total gross margin on 26% of its net sales.
  • The 10-K attributes FY2025 Services growth primarily to advertising, the App Store, and cloud services — the first two are also the areas under active legal and regulatory challenge (see risks).

Revenue by segment (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue, margin = segment profit ÷ segment revenue × 100

  • Americas

    178,353 (43%)

    profit 72,480 · margin 40.6%

  • Europe (incl. India, Middle East, Africa)

    111,032 (27%)

    profit 47,739 · margin 43.0%

  • Greater China

    64,377 (15%)

    profit 26,917 · margin 41.8%

  • Rest of Asia Pacific

    33,696 (8%)

    profit 14,586 · margin 43.3%

  • Japan

    28,703 (7%)

    profit 13,955 · margin 48.6%

Source: Form 10-K (FY2025) — Note 13, Segment Information and Geographic Data Apple's reportable segments are geographic, not product lines. Segment operating income includes only cost of sales and selling/marketing; all R&D and G&A ($42.6B in FY2025) sits in Corporate, so segment profits sum to well above consolidated operating income ($133.1B).

07

Where it earns

Many U.S.-listed companies earn most of their revenue outside the U.S. — this breaks down revenue by country/region so it's clear where the business actually makes its money.

Largest market (FY2025)

Other countries — 48% of revenue

Revenue by country / region (FY2025)

Unit: $M — bar length = revenue, (%) = share of total company revenue

  • Other countries

    199,994 (48%)
  • United States

    151,790 (36%)
  • China (incl. Hong Kong, Taiwan)

    64,377 (15%)

Source: Form 10-K (FY2025) — Net Sales for Countries That Individually Accounted for 10% or More Only the U.S. and China individually exceed 10% of net sales; "China" here matches the Greater China segment (mainland, Hong Kong, Taiwan). No other country is broken out in the filing.

08

Contract structure

Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.

Nearly three-quarters of Apple's revenue is one-time device sales, each re-won with every upgrade cycle. The remaining quarter — Services — is a mix of per-transaction App Store commissions, subscriptions, and multi-year licensing and support arrangements; the 10-K doesn't break Services down by contract type. Some service value is bundled into device prices and recognized over time: total deferred revenue was $13.7B at FY2025 year-end, of which Apple expects 66% to be realized within a year and 34% over one to three-plus years.

  • Spot / one-off transaction

    Products (iPhone, Mac, iPad, Wearables/Home/Accessories)

    74% of FY2025 net sales ($307,003M)

    Typical term: One-time purchase per device, sold directly or through carriers/resellers

    Demand depends on the launch cycle and on customers choosing to upgrade — FY2024 Products revenue was flat as iPhone sales stalled ($200.6B → $201.2B) before Pro models drove FY2025 growth.

  • Short-term contract

    Services (App Store, advertising & licensing, subscriptions, AppleCare, payments)

    26% of FY2025 net sales ($109,158M)

    Typical term: Mix of per-transaction commissions, monthly/annual subscriptions, and multi-year AppleCare and licensing arrangements

    Grew 13–14% a year from FY2023 to FY2025. Includes amortization of service value bundled into device sale prices, which is recognized over the service period rather than at sale.

Source: Form 10-K (FY2025) — Note 2, Revenue (net sales by category, deferred revenue timing)

09

Alliances & capital ties

Equity stakes, joint ventures, and strategic partnerships disclosed across the 10-K, 8-Ks, and proxy statement.

  • Business partnership

    Google LLC (search-distribution licensing)

    Apple earns licensing revenue from Google and other companies for offering their search services on Apple's platforms and apps. Google was found to have violated U.S. antitrust laws in August 2024, and a D.C. District Court remedies order in September 2025 remains subject to further proceedings and appeal; the 10-K warns that remedies prohibiting Google from offering Apple commercial terms for search distribution could materially reduce this revenue.

    Source: Form 10-K (FY2025) — Item 1A Risk Factors (legal and regulatory compliance)

10

Customers & suppliers

Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.

Customers

Apple's customers are "primarily in the consumer, small and mid-sized business, education, enterprise and government markets." It sells directly through its retail and online stores and direct sales force, and indirectly through cellular carriers and other resellers.

Named by the company

None named. The 10-K discloses one customer above 10% of trade receivables but doesn't name it, and doesn't name any carrier or reseller.

What the filings disclose

  • Direct channels were 40% and indirect channels (carriers and other resellers) 60% of FY2025 net sales. (Form 10-K FY2025, Item 1)
  • Third-party cellular network carriers accounted for 34% of trade receivables at FY2025 year-end (38% a year earlier). (Form 10-K FY2025, Note 4)
  • One customer represented 12% of trade receivables at FY2025 year-end. (Form 10-K FY2025, Note 4)

Suppliers

A significant majority of Apple's manufacturing is performed by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan, and Vietnam; the 10-K doesn't name them. The suppliers named below come from Apple's announcements about U.S. manufacturing, so they cover Apple's U.S. supply chain, not its main assembly partners in Asia.

Named by the company

What the filings disclose

  • Apple relies on single-source partners in the U.S., Asia, and Europe to supply and manufacture many components, and on partners primarily in Asia for final assembly. (Form 10-K FY2025, Item 1A)
  • Two vendors accounted for 46% and 23% of vendor non-trade receivables at FY2025 year-end. These arise from components Apple buys and sells to the vendors that assemble its products; the vendors are located primarily in Asia and not named. (Form 10-K FY2025, Note 4)
  • Manufacturing purchase obligations were $56.2B at FY2025 year-end, $55.4B of it due within 12 months. (Form 10-K FY2025, MD&A)
  • Apple has made prepayments under long-term supply agreements to secure components. (Form 10-K FY2025, Item 1A)

The named suppliers are those Apple lists as partners in its U.S. manufacturing commitments ($600B over four years, announced August 2025). Apple's full supplier base is much larger than this list.

11

Competitors & peers

Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.

Apple's 10-K describes its markets as highly competitive, with aggressive price competition and competitors that imitate its product features or offer integrated solutions; some have broad product lines, low-priced products, and large installed bases. It doesn't name any competitor.

Competitors named in the 10-K

Apple's 10-K doesn't name competitors.

Peer group the company chose

2025 primary peer group, from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.

Large U.S.-based, publicly traded technology, media, and internet companies that, in the compensation committee's view, compete with Apple for executive talent (minimum 0B revenue and 00B market cap).

For 2026 the committee removed AT&T, Mastercard, Verizon, and Visa to focus on technology and media.

Source: Proxy statement (DEF 14A, filed 2026-01-08) — Compensation Discussion and Analysis, peer group

Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.

12

M&A history

Companies acquired over the last five years, plus older large acquisitions that still anchor a current business — what each was bought to do, and what happened afterward. From the 10-K, 8-Ks, and the company's press releases.

Apple says it expands its range of offerings "through research and development (R&D), licensing of intellectual property and acquisition of third-party businesses and technology." No acquisition in the last five years was named in its 10-Ks: business-acquisition payments were $33M in FY2021 and $306M in FY2022, and from FY2023 they're no longer shown as a separate cash-flow line. The two deals below are older, but each is tied to a current product or service.

Cash spent on acquisitions, FY2021–FY2022: $339M (years not reported separately are excluded)

  1. Announced Jul 2019

    Intel's smartphone modem business

    $1B

    Older deal, core to today's business

    The majority of Intel's smartphone modem business: about 2,200 Intel employees joined Apple, and Apple came away holding over 17,000 wireless technology patents (combined with its own portfolio).

    Stated purpose (company)
    The team and "significant acquisition of innovative IP" would "help expedite our development on future products and allow Apple to further differentiate moving forward" (Johny Srouji, Apple).
    What it is trying to do (this site's view)
    To develop cellular modems in-house.

    Since then: In February 2025 Apple introduced C1, "the first modem designed by Apple," in iPhone 16e, calling it the result of years of R&D and "the start of a long-term strategy" for more Apple products. The announcement doesn't mention the Intel acquisition.

    Source: Apple Newsroom, Jul 25, 2019 — Apple to acquire the majority of Intel's smartphone modem business · Apple Newsroom, Feb 2025 — Apple debuts iPhone 16e

  2. Jul 2014 (FY2014)

    Beats Music and Beats Electronics

    $2.6B purchase price (announced as about $3B including ~$400M vesting over time)

    Older deal, core to today's business

    Beats Electronics made Beats headphones, speakers, and audio software; Beats Music was a subscription music-streaming service.

    Stated purpose (company)
    "Music is such an important part of Apple's DNA and always will be. The addition of Beats will make our music lineup even better" (Eddy Cue, Apple).
    What it is trying to do (this site's view)
    Bought a headphone and speaker brand and a subscription music-streaming service together.

    Since then: Apple Music launched about 11 months later (June 30, 2015), with a live radio station branded Beats 1; it is now part of Services. Beats products are still listed in Wearables, Home and Accessories in the FY2025 10-K, a category that has shrunk from $39.8B (FY2023) to $35.7B (FY2025).

    Source: Form 10-K (FY2014) — Note 4, Goodwill and Other Intangible Assets · Apple Newsroom, May 28, 2014 — Apple to Acquire Beats · Apple Newsroom, Jun 8, 2015 — Introducing Apple Music

Apple doesn't name its smaller acquisitions in its 10-Ks. Press reports of small AI and technology acquisitions aren't listed here, since this section uses only SEC filings and the company's own press releases.

13

Five years of financials

Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.

Revenue over time

Unit: $M

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

Profit over time (operating → net)

Unit: $M

  • Operating income
  • Pretax income
  • Net income

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

Margins over time

Unit: %

  • Operating margin
  • Net margin

formulaoperating income ÷ revenue × 100

termsOperating income · Revenue (net sales)

formulanet income attributable to the company ÷ revenue × 100

termsNet income (attributable to the company)

Cash flow over time

Unit: $M (below zero = cash went out)

  • Operating CF
  • Investing CF
  • Free CF

formulacash flow from operations − capital expenditures

termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

Financial stability & capital efficiency

Unit: %

  • Equity ratio
  • ROE

formulatotal equity ÷ total assets × 100 (as reported in the 10-K)

termsStockholders’ equity · Total assets

formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)

termsNet income (attributable to the company) · Stockholders’ equity

Earnings per share (EPS) and dividend per share

Unit: $

  • EPS
  • Dividend per share

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

Line itemFY202110-K on EDGAR ↗FY202210-K on EDGAR ↗FY202310-K on EDGAR ↗FY202410-K on EDGAR ↗FY202510-K on EDGAR ↗
Income statement ($M)
Revenue365,817394,328383,285391,035416,161
Operating income108,949119,437114,301123,216133,050
Pretax income109,207119,103113,736123,485132,729
Net income (attributable)94,68099,80396,99593,736112,010
Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100—7.8%-2.8%2.0%6.4%
Operating margincalcoperating income ÷ revenue × 10029.8%30.3%29.8%31.5%32.0%
Net margincalcnet income attributable to the company ÷ revenue × 10025.9%25.3%25.3%24.0%26.9%
Balance sheet ($M)
Total assets351,002352,755352,583364,980359,241
Total equity63,09050,67262,14656,95073,733
Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable124,719120,069111,088106,62998,657
Equity ratio18.0%14.4%17.6%15.6%20.5%
ROE150.1%175.5%171.9%157.4%171.4%
Cash flow ($M)
Operating CF104,038122,151110,543118,254111,482
Investing CF-14,545-22,3543,7052,93515,195
Financing CF-93,353-110,749-108,488-121,983-120,686
Free cash flowcalccash flow from operations − capital expenditures92,953111,44399,584108,80798,767
Cash and equivalents34,94023,64629,96529,94335,934
Per share & other
EPS ($)5.616.116.136.087.46
BVPS ($)3.843.184.003.774.99
Dividend per share ($)0.850.900.940.981.02
Payout ratiocalcdividend per share ÷ diluted EPS × 10015.2%14.7%15.3%16.1%13.7%
P/E (x)26.224.627.937.534.2
EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)21.419.622.226.726.9
P/B (x)calcP/E × EPS ÷ BVPS (= period-end share price ÷ book value per share)38.2647.3342.8460.4751.18

P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (five-year selected financial data and the consolidated financial statements), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.

14

Is ROIC above WACC?

ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.

ROIC (FY2025)

62.6%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

e.g.$133,050M × (1 − 21%) ÷ $167,985M × 100 = 62.6%

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

WACC (this site’s estimate)

9.50%

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

e.g.Equity weight: $3,835.22B ÷ ($3,835.22B + $98.66B) = 97.5%

e.g.Debt weight: $98.66B ÷ ($3,835.22B + $98.66B) = 2.5%

e.g.WACC: 9.7% × 97.5% + 4.0% × (1 − 21%) × 2.5% = 9.50%

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

ROIC − WACC

+53.1pt▲favorable

Earning more than the cost of capital (ROIC > WACC in 5 of 5 years)

formulaROIC − WACC (positive means the business earns more than its cost of capital)

termsROIC · WACC

WACC 9.50% is this site’s estimate under the assumptions below (not a figure the company has published)

Risk-free rate
4%
β
1.03 (price-derived adjusted beta)
Equity risk premium
5.5%
Cost of equity
9.66%
Cost of debt
4.00% (no debt on record, using the risk-free rate)
Effective tax rate
21%
Capital structure (equity : debt)
97% : 3%
→ Change assumptions and recalculate

ROIC over time, vs. WACC

Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red

  • ROIC (above WACC)
  • ROIC (below WACC)
  • WACC 9.50%

formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)

termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity

formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight

termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization

Try different WACC assumptions

β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The defaults reflect 2026-09.

Initial β: 1.03 (price-derived adjusted beta. Raw β 1.05, R² 0.31, 130 weeks)

formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)

e.g.0.67 × 1.051 + 0.33 = 1.034

termsβ (beta)

Period 2024-04-05–2026-10-02, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.

Cost of equity9.66%

formularisk-free rate + β × equity risk premium

e.g.4.0% + 1.03 × 5.5% = 9.7%

termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)

Market value of equity$3,835.22B

formulaP/E × net income ≈ period-end share price × shares outstanding (= market cap)

termsP/E · Net income (attributable to the company) · Market capitalization · Market value of equity

Interest-bearing debt$98.66B
Cost of debt *no debt on record, using the risk-free rate instead4.00%

formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)

termsInterest-bearing debt · Risk-free rate

Capital structure (equity weight : debt weight)97% : 3%

15

What the price implies (DCF)

A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.

Growth the price implies (FY2025)

7.0%

Perpetual FCF growth: g = r − FCF ÷ EV = 9.5% − 2.5%

Past FCF growth (FY2021–FY2025)

+1.5%

Compound annual rate, 4 years

Past revenue growth (FY2021–FY2025)

+3.3%

Compound annual rate, 4 years

Inputs (FY2025): free cash flow $98.77B (operating CF − capex); enterprise value $3,879.18B = market cap $3,835.22B + debt $98.66B − cash and short-term investments $54.7B; r = WACC of 9.5% using this page’s default assumptions (β 1.03, risk-free 4.0%, market premium 5.5%).

Try your own assumptions

V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.

Theoretical enterprise value

$3,950.68B

FCF $98.77B ÷ (9.5% − 7.0%)

Theoretical ÷ actual enterprise value

1.02x

Above 1x: these assumptions value the business above the market did

How sensitive the answer is

Theoretical ÷ actual enterprise value for each combination of r and g.

g \ r7.5%8.5%9.5%10.5%11.5%
0%0.34x0.30x0.27x0.24x0.22x
2%0.46x0.39x0.34x0.30x0.27x
4%0.73x0.57x0.46x0.39x0.34x
6%1.70x1.02x0.73x0.57x0.46x
8%—5.09x1.70x1.02x0.73x

A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap and enterprise value use the fiscal year-end price, not today’s.

16

Earnings quality

The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.

  • ✓

    Operating CF ÷ net income: averages 1.14x

    Profit is backed by cash coming in.

  • ✓

    Accrual ratio (latest): 0.1%

    A small share of profit rests on accounting estimates.

  • ✓

    Core-earnings share (operating income ÷ pretax income): 100%

    Most profit comes from core operations.

  • ✓

    Days sales outstanding: 26 → 35 days

    No major slowdown in collecting on sales.

Operating CF vs. net income

Unit: $M — operating CF above net income means profit is backed by cash

  • Operating CF
  • Net income

formulacash flow from operations ÷ net income attributable to the company

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formula(net income − operating CF) ÷ average total assets × 100

termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

Profit bridge (FY2025)

Unit: $M — what moved profit from operating income to net income

  • Profit (each stage)
  • Pushed profit up
  • Pushed profit down

formulaoperating income ÷ income before income taxes × 100

termsOperating income · Income before income taxes (pretax income)

Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2025-10-31

Receivables & inventory days

Unit: days — days grow when receivables or inventory build up faster than sales

  • Days sales outstanding
  • Days inventory outstanding

formulaperiod-end receivables ÷ revenue × 365

termsAccounts receivable · Revenue (net sales)

formulaperiod-end inventory ÷ revenue × 365

termsInventory · Revenue (net sales)

Worked examples (latest period)

formulacash flow from operations ÷ net income attributable to the company

e.g.$111,482M ÷ $112,010M = 1.00x

termsCash flow from operations (operating CF) · Net income (attributable to the company)

formulaoperating income ÷ income before income taxes × 100

e.g.$133,050M ÷ $132,729M × 100 = 100%

termsOperating income · Income before income taxes (pretax income)

formulaperiod-end receivables ÷ revenue × 365

e.g.$39,777M ÷ $416,161M × 365 = 35 days

termsAccounts receivable · Revenue (net sales)

17

Strengths & weaknesses

Strengths

  1. 1. Services: a large, fast-growing, high-margin revenue stream

    Services grew from $85.2B (FY2023) to $109.2B (FY2025) while its gross margin rose from 70.8% to 75.4%. It now produces 42% of Apple's gross margin on 26% of its revenue, lifting the company-wide gross margin from 44.1% to 46.9% over two years even though Products margins were flat.

    Evidence: Form 10-K MD&A — net sales by category and gross margin tables

  2. 2. Integrated hardware, software, and services design

    The 10-K states Apple "designs and develops nearly the entire solution for its products, including the hardware, operating system, numerous software applications and related services," and lists that integration among the principal competitive factors it relies on.

    Evidence: Form 10-K Item 1 Business (Competition)

  3. 3. Very high capital efficiency and cash generation

    Operating cash flow was $111.5B in FY2025 against capex of $12.7B, since manufacturing is largely outsourced. That funded $90.7B of share repurchases in FY2025 alone; shares outstanding fell from 16.4B (FY2021) to 14.8B (FY2025), about 10%.

    Evidence: SEC EDGAR XBRL — cash flow statement; Form 10-K Note 10 share repurchase program

Weaknesses

  1. 1. Heavy dependence on a single product line

    iPhone was 50.4% of FY2025 net sales ($209.6B). iPhone revenue was essentially flat in FY2024 ($200.6B → $201.2B), which held total revenue growth to 2% that year.

    Evidence: Form 10-K MD&A — net sales by category

  2. 2. Greater China revenue shrinking

    Greater China net sales fell from $72.6B (FY2023) to $67.0B (FY2024) to $64.4B (FY2025) — the only segment to decline in both years — primarily on lower iPhone sales. Its share of total net sales dropped from 18.9% to 15.5%.

    Evidence: Form 10-K Note 13 Segment Information (R68)

  3. 3. (this site's assessment) Book equity and ROE are not meaningful yardsticks

    Years of buybacks exceeding net income have left shareholders' equity at only $73.7B against $359.2B of total assets, so ROE computes to over 150% every year shown. ROE here reflects capital structure more than operating performance; ROIC and absolute cash flow are more informative for Apple.

    Evidence: SEC EDGAR XBRL balance sheet; this site's calculation

18

What draws investors to it

Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.

P/E (FY2025)

34.2x

Price at fiscal year-end ÷ diluted EPS

Dividend yield (FY2025)

0.40%

Dividends per share ÷ fiscal year-end price

Payout ratio (FY2025)

14%

Dividends per share ÷ diluted EPS

FCF yield (FY2025)

2.6%

(Operating CF − capex) ÷ market cap

  1. 1. Buybacks turn modest profit growth into faster per-share growth

    Net income grew about 4.3% a year from FY2021 ($94.7B) to FY2025 ($112.0B), but diluted EPS grew 7.4% a year ($5.61 → $7.46), because shares outstanding fell about 10% (16.4B → 14.8B). In FY2025 Apple spent $90.7B on buybacks and $15.4B on dividends, about 95% of net income.

    What has to hold
    Free cash flow stays near $100B a year (it was $98.8B in FY2025), so Apple can keep retiring shares at this pace without adding debt.
    The other side
    At a P/E of 34x (FY2025 year-end) each buyback dollar retires fewer shares than at 25x in FY2022. The dividend yield is only about 0.4%, so investors looking for income get little of the payout directly.

    Evidence: SEC EDGAR XBRL (net income, EPS, shares outstanding); Form 10-K cash flow statement

  2. 2. Services is pushing up the whole company's margin

    Services grew 13–14% a year in FY2024–FY2025 at a 75.4% gross margin, versus 36.8% for Products. As its share of revenue rose from 22% (FY2023) to 26% (FY2025), Apple's operating margin climbed from 29.8% (FY2021) to 32.0% (FY2025).

    What has to hold
    App Store commissions and search-licensing payments, two of the main Services profit sources, aren't cut back sharply by regulation or court rulings.
    The other side
    Those same revenues are what the EU's Digital Markets Act, the Epic Games injunction, the DOJ lawsuit, and the U.S. v. Google remedies target (see Risks). The filing doesn't disclose how much of Services they account for, so the exposure can't be sized from public data.

    Evidence: Form 10-K MD&A (net sales by category, gross margin); SEC EDGAR XBRL operating income

  3. 3. Large cash generation and more cash than debt

    Apple held $132.4B of cash and marketable securities at FY2025 year-end against $98.7B of debt (term debt plus commercial paper), and spent relatively little on capex ($12.7B against $111.5B of operating cash flow) because manufacturing is largely outsourced.

    What has to hold
    iPhone demand holds up; it was 50% of FY2025 net sales.
    The other side
    The market already prices this in. FCF yield fell from 4.5% (FY2022) to 2.6% (FY2025) as the P/E rose from 25x to 34x, so investors are paying more for each dollar of cash flow than a few years ago, with revenue growing 6% in FY2025 and 2% in FY2024.

    Evidence: Form 10-K Liquidity and Capital Resources; SEC EDGAR XBRL; this site's calculation

Dividend yield, payout ratio, P/E, and FCF yield above use the fiscal year-end share price, not today's price, so they shift as the stock moves.

19

Resilience

How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.

1. Financial buffer (FY2025)

Cash & short-term investments ÷ debt due within a year

2.7x

$54.7B vs. $20.33B

Interest coverage (operating income ÷ interest expense)

Not disclosed

Interest expense isn’t reported as a separate line.

Free cash flow ÷ dividends paid

6.4x

$98.77B vs. $15.42B (FCF = operating CF − capex)

2. Worst year in the record, and the recovery

FigureWorst year-over-year changeBack to the prior level?
Revenue-2.8% in FY2023 ($394.33B → $383.29B)Yes, by FY2025
Operating income-4.3% in FY2023 ($119.44B → $114.3B)Yes, by FY2024

Covers only the 5 fiscal years on record (FY2021–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.

3. Business resilience (from the 10-K)

  • Liquidity

    Apple says its cash, cash equivalents and marketable securities — $132.4B at FY2025 year-end — "along with cash generated by ongoing operations and continued access to debt markets, will be sufficient to satisfy its cash requirements and capital return program over the next 12 months and beyond." That total includes $77.7B of non-current marketable securities, which the tile above leaves out.

    Source: Form 10-K FY2025, MD&A Liquidity and Capital Resources

  • Services cushioned a weak hardware year

    In FY2024, Products revenue fell about 1% ($298.1B → $294.9B) while Services grew 13% ($85.2B → $96.2B), so total revenue still rose 2%.

    Source: Form 10-K FY2025, MD&A net sales by category · See Contract structure

  • Customer concentration

    No customer is named. Carriers accounted for 34% of trade receivables at FY2025 year-end, and one unnamed customer for 12%.

    Source: Form 10-K FY2025, Note 4 · See Customers & suppliers

  • Geographic spread

    FY2025 net sales by segment: Americas 43%, Europe 27%, Greater China 15%, Rest of Asia Pacific 8%, Japan 7%.

    Source: Form 10-K FY2025, Note 13 · See Where it earns

  • Supply concentration

    A significant majority of manufacturing is performed by outsourcing partners located primarily in China mainland, India, Japan, South Korea, Taiwan, and Vietnam, and certain components are obtained from single or limited sources.

    Source: Form 10-K FY2025, Item 1 and Item 1A · See Customers & suppliers

  • Business continuity

    The 10-K refers to Apple's and its vendors' business continuity and disaster recovery planning, and warns that it "may not be sufficient for all eventualities."

    Source: Form 10-K FY2025, Item 1A

20

Risks (including geopolitical)

Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.

Risk map

Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).

Impact
High
3
12
Med
7
456
Low
LowMedHigh

Likelihood →

"Company disclosure" vs. "this site’s assessment"

The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.

Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring).

Geopolitical risk highlights

  • [1]Manufacturing concentration in Asia, and tariffs
  1. 1Geopolitical

    Manufacturing concentration in Asia, and tariffs

    Company disclosure (summarized from the 10-K)
    A significant majority of manufacturing is done by partners in China mainland, India, Japan, South Korea, Taiwan, and Vietnam. New U.S. tariffs announced from Q2 FY2025 on imports from those countries (and retaliatory measures) already weighed on FY2025 Products gross margin, and a Section 232 investigation could lead to further sector-based tariffs.
    Company’s stated mitigation
    Manufacturing spread across several Asian countries rather than China alone; the 10-K lists partner and facility sourcing in the U.S. as well.
    This site’s assessment
    Impact High / Likelihood High
  2. 2Law & regulation

    App Store rules under antitrust and platform regulation

    Company disclosure (summarized from the 10-K)
    The EU fined Apple €500 million under the Digital Markets Act in April 2025 and ordered changes to App Store steering rules. In the U.S., an April 2025 court ruling in the Epic Games case barred Apple from charging any commission on purchases made outside apps (under appeal), and the DOJ's March 2024 monopolization suit is pending. These directly target App Store commissions, one of the main drivers of Services growth.
    Company’s stated mitigation
    As of the FY2025 10-K, Apple had appealed the Epic ruling (Ninth Circuit oral arguments were set for October 2025) and had already changed App Store terms in the EU and U.S. to comply.
    This site’s assessment
    Impact High / Likelihood High
  3. 3Law & regulation

    Google search-licensing revenue at risk from antitrust remedies

    Company disclosure (summarized from the 10-K)
    Apple earns licensing revenue from Google for default-search placement. A September 2025 remedies order in the U.S. v. Google case is subject to further proceedings and appeal; if the DOJ's original proposals were imposed on appeal, Google could be barred from paying Apple for search distribution. The filing doesn't disclose how much revenue these arrangements bring in.
    Company’s stated mitigation
    Not detailed in the filing; the current remedies order does not prohibit the payments.
    This site’s assessment
    Impact High / Likelihood Low
  4. 4Demand & macro

    China demand and competition

    Company disclosure (summarized from the 10-K)
    Greater China revenue declined in both FY2024 and FY2025, mainly on iPhone. With 15.5% of net sales and a 41.8% segment operating margin, further weakness there would weigh on both revenue and profit.
    Company’s stated mitigation
    Growth in Europe (+10%), Japan (+15%), and Rest of Asia Pacific (+10%) in FY2025 more than offset the Greater China decline.
    This site’s assessment
    Impact Med / Likelihood Med
  5. 5Competition & technology shift

    Product transitions and competitors' pricing

    Company disclosure (summarized from the 10-K)
    The 10-K describes its markets as marked by aggressive price competition, short product life cycles, and competitors imitating Apple's features. The company must keep introducing new products (and navigate the transitions between them) to stimulate upgrade demand; Wearables/Home/Accessories revenue has already declined two years running.
    Company’s stated mitigation
    R&D spending rose 10% to $34.6B in FY2025.
    This site’s assessment
    Impact Med / Likelihood Med
  6. 6FX & interest rates

    Currency exposure

    Company disclosure (summarized from the 10-K)
    Sales outside the U.S. were 64% of FY2025 net sales. The 10-K notes that weaker foreign currencies relative to the U.S. dollar hurt Americas net sales in FY2025.
    Company’s stated mitigation
    Apple hedges foreign-currency exposure with forwards, options, and cross-currency swaps (Item 7A).
    This site’s assessment
    Impact Med / Likelihood Med
  7. 7Governance & quality

    International tax disputes

    Company disclosure (summarized from the 10-K)
    The European Court of Justice's September 2024 ruling upholding the EU's State Aid Decision forced a one-time $10.2B net income tax charge in Q4 FY2024, pushing that year's effective tax rate to 24.1% (vs. 15.6% in FY2025). The 10-K describes the tax outcome as subject to significant judgment across many jurisdictions.
    Company’s stated mitigation
    The State Aid matter is now settled; uncertain tax positions are reserved for.
    This site’s assessment
    Impact Med / Likelihood Low

21

What to watch going forward

  • The outcome of Apple's appeal of the April 2025 Epic Games ruling, and how much App Store commission revenue shifts to outside-app purchases in the U.S.
  • Appeals and further proceedings in U.S. v. Google remedies, and any change to Apple's search-licensing terms.
  • Whether Greater China net sales stabilize after two years of decline.
  • Tariff costs on Products gross margin (36.8% in FY2025), and the outcome of the Section 232 investigation.
  • Services growth staying in the low-teens percent as it becomes a larger share of revenue.

22

Source documents

This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.

Last updated

Analysis last edited: September 29, 2026 · Financial data fetched: September 30, 2026 14:27 (SEC EDGAR) · Source 10-K filed: October 31, 2025

Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.

This page is this site’s own analysis based on public information, and does not represent Apple Inc.’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.