Apple Inc. (APC.DE) reported Q4 2024 results with revenue of USD 94.93 billion, representing a year-over-year increase of 4.6% and showing resilience across device and services contributions. Gross profit of USD 43.88 billion yielded a gross margin of 46.22%, while operating income reached USD 29.59 billion (operating margin 31.17%), and EBITDA stood at USD 32.50 billion. Notably, net income declined to USD 14.74 billion, down 37.65% year over year, driving EPS to USD 0.97 (down 36.6% YoY). These profitability dynamics occurred despite revenue expansion, highlighting the impact of higher tax expense and the mix of costs in the period.
From a cash-flow and capital-allocation perspective, Apple generated USD 26.81 billion of operating cash flow and USD 23.90 billion of free cash flow. The company deployed significant capital toward share repurchases (USD 25.08 billion) and dividends (USD 3.80 billion), contributing to a negative net financing cash flow of USD 24.95 billion and a modest net cash increase of USD 3.31 billion for the quarter. The balance sheet shows substantial liquidity with notable investments; however, reported net debt in the dataset is USD 89.12 billion, which appears incongruous with the cash and investments figures and may reflect data consistency issues. Investors should reconcile cash, investments, and debt figures with company filings when forming a legal view on leverage.
Overall, Apple remains a cash-generative, highly cash-flow-positive business with a strong margin backbone and a large investment base. The challenge for equity holders lies in evaluating the earnings trajectory given the YoY net income decline against the backdrop of a high-margin platform mix and continued capital return programs. The long-duration competitors and cyclicality of device demand are counterbalanced by a growing Services ecosystem and a robust installed base, supporting a constructive longer-term investment thesis under stable macro conditions.