Apple’s Earnings: A Juicy Bite
Modern tech companies can only hope to be as successful as Apple has been during the last decade or so. Emulating the tech mogul’s success has been difficult, even for established tech companies, but checking out how Apple spends its money is a great place to start.
Amazingly, Apple breaks its own sales records each year by a substantial margin. For example, the company netted $108.249 billion in 2011 and $156.508 billion in 2012. Almost unbelievably, Apple experienced a growth rate of 58 percent in the fiscal year of 2011 to 2012, during which its operating expenses totaled $13.421 billion and its net income before taxes equaled $55.763 billion.
Although the statutory income tax rate for companies with an Apple-sized income is 35 percent, the company paid a rate of 25.2 percent in 2012. The tech mogul cited several reasons for its excellent tax rate, including foreign earnings that are “intended to be indefinitely reinvested outside the U.S.” Apple pays a global tax rate of 9.8 percent.
Source: A Bite Out of Apple