Apple recently released its financial results for the second quarter of its fiscal year 2024, which ended on March 30, 2024.
The tech giant Apple reported a slight decline in overall revenue compared to the same quarter in the previous fiscal year. However, its Services revenue reached an all-time high.
Apple’s financial report for Q2 2024 showed a mixed bag. Overall revenue dipped 4% year-over-year to $90.75 billion, with net income also down slightly to $23.64 billion.
Earnings per share remained flat compared to Q2 2023. However, the bright spot came from the Services segment, which saw a 14% increase in revenue to $23.87 billion. This growth was offset by a 9% decline in product revenue, which reached $66.89 billion.
While product sales, including iPhones, iPads, Macs, and wearables, dipped slightly year-over-year, Apple’s Services segment, which includes revenue from the App Store, Apple Music, iCloud, and other subscription offerings, continued its strong performance.
The company’s total assets also dipped from $352.6 billion to $337.4 billion. This decrease came from a decline in current assets, which include cash, marketable securities, and accounts receivable. On the other hand, non-current assets, which represent more long-term investments, remained relatively flat.
Liabilities and shareholders’ equity also saw a decrease, going from $290.4 billion to $263.2 billion. Interestingly, within this category, current liabilities actually increased. This means Apple has more short-term debts like accounts payable and commercial paper. Non-current liabilities also rose slightly.
Another bright spot in the report is the increase in shareholders’ equity, which climbed from $62.1 billion to $74.2 billion. This indicates a rise in the company’s net worth, driven by growth in common stock and additional paid-in capital.
Apple’s cash flow statement for the fiscal year shows that the company generated good cash from its operating activities.
The report reveals a company generating solid cash flow from its core business operations. The net cash flow from these activities reached $62.6 billion, driven by strong net income and adjustments for non-cash expenses. This indicates Apple is efficient at converting sales into actual cash.
However, this positive cash flow is balanced by the company’s activities related to financing. Repurchases of common stock and dividend payments to shareholders resulted in a net cash outflow of $61.0 billion in financing activities.
In simpler terms, while Apple is adept at generating cash from its core business, it’s also using a good portion of that cash to invest in itself through stock repurchases and to reward shareholders through dividends.
This approach shows a company confident in its future but also mindful of returning value to its investors.
