Balance Sheet

Balance Sheet

On the left is a photo of Apple’s second quarter 2020 balance sheet.

The first section on the balance sheet is assets, which are things the company owns. From there, assets can be categorized as current assets and non-current assets. Current assets, such as cash and inventories, can be used or easily converted to cash within a one-year period. Non-current assets, such as property and long term investments, cannot be easily converted to cash or used within a one-year period.

At the end of Q2 2020, Apple had $40.174 billion in cash and $53.877 billion in current marketable securities, which can be easily converted into cash. Cash is one of the most important things a business needs to operate effectively.

Accounts receivable (AR) is another important part of the asset section. AR represents the amount of money the company has to receive from customers or other business partners.

The second section on the balance sheet is liabilities and shareholders equity. Just like assets, liabilities can be categorized as current liabilities and non-current liabilities. Current liabilities, such as short-term debt, must be paid or exercised within a one-year period. Non-current liabilities, such as long-term debt, are not paid or exercised within a one-year period.

Accounts payable (AP) is another important part of the liabilities section. AP represents the amount of money the company owes to vendors or other business partners.

Shareholder’s equity is the difference between the assets and liabilities. Essentially, shareholder’s equity is the value of the company if all liabilities were settled.

At the end of Q2 2020, Apple had $320.4 billion in assets and $241.975 billion in liabilities. This results in shareholder’s equity of $78.425 billion.