On Dec. 29, Apple Computer (NASDAQ:AAPL) released fourth-quarter earnings for the period ended Sept. 30. It's a bit late, because of a lengthy stock options review, but at least it's here.

  • And it looks good, too. Those iPods and Intel Macs keep selling like hotcakes, this time on the back of substantial back-to-school promotions. This Fool discussed that when the preliminary results were released back in October.
  • There were plenty of large changes on the balance sheet, leading to weaker operating cash flows. Regardless, Apple pressed on with substantial capital spending this year.
  • We're only weeks away from the next quarterly report, this time for the holiday season. Expect some fireworks, amigo. To see what our Motley Fool CAPS community thinks of Apple or to share your own thoughts, log onto CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$4,837.0

$3,678.0

31.5%

Net Profit

$542.0

$428.0

26.6%

EPS

$0.62

$0.49

26.5%

Diluted Shares

878.8

866.5

1.4%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

29.2%

28.1%

1.1

Operating Margin

12.6%

11.3%

1.2

Net Margin

11.2%

11.6%

(0.4)

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Management Effectiveness

Q4 2006

Q4 2005

Change*

Return On Average Assets

15.1%

15.6%

(0.5)

Return On Average Equity

24.9%

24.0%

0.9

*Expressed in percentage points

See how management puts its financial tools to work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$10,110.0

$8,261.0

22.4%

Accounts Rec.

$1,252.0

$895.0

39.9%

Inventory

$270.0

$165.0

63.6%

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$3,390.0

$1,779.0

90.6%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$2,220.0

$2,535.0

(12.4%)

Capital Expenditures

$657.0

$260.0

152.7%

Free Cash Flow

$1,563.0

$2,275.0

(31.3%)



Find out why Fools always follow the money.

Related Companies:

  • Microsoft (NASDAQ:MSFT)
  • Dell (NASDAQ:DELL)
  • Hewlett-Packard (NYSE:HPQ)

Related Foolishness:

Intel, Microsoft, and Dell are Motley Fool Inside Value picks, while Dell is also recommended in Stock Advisor. Learn about the reasons why with a free 30-day trial.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here.