Apple: A Quarterly Comparison of Costs and Cost Ratios To Revenue
Last week I published an overview of Apple's profitability by quarter and the influences of gross margins, tax rates and operating expenses. In that post I stated while much attention is paid to the impact of gross margins, there are other cost components relative to Apple's financial performance that can have a greater influence on net results than the quarterly fluctuations in the gross margin ratios.
In this post I will illustrate using graphs and corresponding table data the changing relative importance among Apple's reported cost components to the company's net results over the the past eight quarters.
Expenses Per Revenue Dollar: An 8-Quarter Comparison
The graph below illustrates the reported expenses per revenue dollar for costs of sales, operating expenses and taxes. To present the data I converted the reported tax expense to a percentage of revenue and used the inverse ratio of gross margin which represents cost of sales.