What are the key financial metrics to consider when evaluating Apple's stock?

When evaluating Apple's stock, several key financial metrics provide insights into its financial health, profitability, and market position. Here are the most important ones to consider: 1. **Revenue Growth**: Apple has demonstrated consistent revenue growth, with a trailing twelve-month revenue of $400.37 billion and a one-year revenue growth rate of 7.8%. This indicates a strong market presence and customer demand for its products. 2. **Profitability Metrics**: The company's gross margin stands at 46.63%, net margin at 24.3%, and operating margin at 31.81%. These high margins reflect Apple's efficient operational management and ability to convert revenue into net income. 3. **Financial Stability**: Apple's balance sheet shows a current ratio of 0.82 and a quick ratio of 0.78, suggesting a need for careful liquidity management. However, the Altman Z-Score of 9.4 and the Piotroski F-Score of 7 indicate strong financial stability and a healthy financial situation. 4. **Insider Activity**: Moderate insider selling, with 4,486 shares sold over the past three months, is a factor for investors to monitor. 5. **Market Sentiment and Valuation**: Apple's market sentiment is positive, as reflected by its stock price movement following strong third-quarter performance. The company's valuation metrics, such as the PE ratio, PS ratio, and EV/EBITDA ratio, provide insights into its market positioning and investment expectations. 6. **Risk Assessment**: Sector-specific risks like rapid technological changes and competitive pressures are pertinent. The beta of 1.12 indicates moderate volatility relative to the market, which investors should consider in their risk assessments. By analyzing these metrics, investors can gain a comprehensive understanding of Apple's financial health, profitability, and market position, which is essential for making informed investment decisions.