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Compare Meta and Apple on leverage over the most recent fiscal year.

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Report

Leverage

META and AAPL present starkly different leverage profiles, with AAPL carrying a far larger absolute debt load but META rapidly expanding its borrowings from a much lower base. META's long-term noncurrent debt has surged from $9.9B in FY2022 [META:Q0] to $58.7B in FY2025 [META:Q3], a nearly six-fold increase, while its stockholders' equity has grown steadily from $125.7B [META:Q4] to $217.2B [META:Q7]. Using noncurrent long-term debt as the primary measure, META's gross debt-to-equity ratio stands at approximately 0.27x in FY2025, though the true ratio could be modestly higher if current portions of long-term debt or other interest-bearing liabilities are included. AAPL's total debt is substantially larger: in FY2025 it comprises $78.3B in long-term noncurrent debt [AAPL:Q3], $12.4B in current maturities [AAPL:Q7], and $8.0B in commercial paper [AAPL:Q11], summing to approximately $98.7B. For context, the same three components totaled roughly $120.1B in FY2022 (noncurrent $99.0B [AAPL:Q0] + current $11.1B [AAPL:Q4] + CP $10.0B [AAPL:Q8]), indicating AAPL has been meaningfully reducing its debt load — though it is worth noting that noncurrent long-term debt alone was even higher in FY2021, so FY2022 may not represent the absolute historical peak on a total-debt basis. Against AAPL's comparatively thin equity base of $73.7B [AAPL:Q15], its FY2025 debt-to-equity ratio is approximately 1.34x, far more leveraged than META on either a gross or net basis. Both companies hold substantial cash — META at $35.9B [META:Q11] and AAPL at $35.9B [AAPL:Q19] — which meaningfully offsets gross debt, but AAPL's net leverage position remains considerably more stretched given its smaller equity cushion.

META: META has been aggressively adding debt, with long-term noncurrent borrowings jumping from $9.9B in FY2022 [META:Q0] to $58.7B in FY2025 [META:Q3], yet its balance sheet remains conservatively leveraged because stockholders' equity has simultaneously grown to $217.2B [META:Q7]. On a noncurrent long-term debt basis, the gross debt-to-equity ratio is approximately 0.27x, with the caveat that any current debt components not captured in the filing data reviewed could push this figure modestly higher. With $35.9B in cash [META:Q11], META's net debt position is modest relative to its equity, suggesting the company retains significant financial flexibility despite the rapid debt build-up.

AAPL: AAPL carries a much heavier debt load in both absolute and relative terms: FY2025 total debt of approximately $98.7B (noncurrent $78.3B [AAPL:Q3], current maturities $12.4B [AAPL:Q7], commercial paper $8.0B [AAPL:Q11]) sits against a comparatively thin equity base of $73.7B [AAPL:Q15], yielding a gross debt-to-equity ratio of roughly 1.34x. On a constructive note, AAPL has been steadily reducing its overall debt from the approximately $120.1B level seen in FY2022, and its $35.9B cash position [AAPL:Q19] provides a meaningful offset — though net leverage remains elevated relative to META.


Critic flags (2)

weakly_supportedleverage
AAPL's total debt peaked at roughly $121.1B in FY2022 (noncurrent $99.0B + current $11.1B + CP $10.0B)
The actual sum of the three cited components is $98,959M + $11,128M + $9,982M = $120,069M (~$120.1B), not $121.1B as stated. The ~$1B overstatement appears to be an arithmetic rounding error. Additionally, AAPL's noncurrent LT debt alone was higher in FY2021 ($109.1B) than FY2022 ($99.0B), so FY2022 may not represent the true historical peak on a total-debt basis without verifying FY2021 current maturities and CP.
weakly_supportedleverage
META's debt-to-equity ratio is roughly 0.27x in FY2025
The 0.27x ratio uses only noncurrent LT debt ($58.7B) as the numerator against equity ($217.2B). If META carries any current portion of LT debt or other interest-bearing liabilities in FY2025, the true D/E would be higher. The filing data confirms $58,744M noncurrent but does not rule out additional current debt components that were not checked.

Cross-axis notes

The leverage analysis correctly identifies that both META and AAPL hold identical cash balances (~$35.9B) in FY2025, which is a notable coincidence worth flagging in any cross-axis profitability or capital allocation analysis — AAPL's much larger gross debt relative to similar cash implies a very different net leverage position.
META's rapid debt expansion (from $0 in FY2021 to $58.7B noncurrent in FY2025) likely reflects capital allocation decisions (e.g., AI infrastructure investment) that would be relevant to a capex or growth axis if one exists.

Citations (32)

quant META FY2022
us-gaap:LongTermDebtNoncurrent = $9.92B
quant META FY2023
us-gaap:LongTermDebtNoncurrent = $18.39B
quant META FY2024
us-gaap:LongTermDebtNoncurrent = $28.83B
quant META FY2025
us-gaap:LongTermDebtNoncurrent = $58.74B
quant META FY2022
us-gaap:StockholdersEquity = $125.71B
quant META FY2023
us-gaap:StockholdersEquity = $153.17B
quant META FY2024
us-gaap:StockholdersEquity = $182.64B
quant META FY2025
us-gaap:StockholdersEquity = $217.24B
quant META FY2022
us-gaap:CashAndCashEquivalentsAtCarryingValue = $14.68B
quant META FY2023
us-gaap:CashAndCashEquivalentsAtCarryingValue = $41.86B
quant META FY2024
us-gaap:CashAndCashEquivalentsAtCarryingValue = $43.89B
quant META FY2025
us-gaap:CashAndCashEquivalentsAtCarryingValue = $35.87B
quant AAPL FY2022
us-gaap:LongTermDebtNoncurrent = $98.96B
quant AAPL FY2023
us-gaap:LongTermDebtNoncurrent = $95.28B
quant AAPL FY2024
us-gaap:LongTermDebtNoncurrent = $85.75B
quant AAPL FY2025
us-gaap:LongTermDebtNoncurrent = $78.33B
quant AAPL FY2022
us-gaap:LongTermDebtCurrent = $11.13B
quant AAPL FY2023
us-gaap:LongTermDebtCurrent = $9.82B
quant AAPL FY2024
us-gaap:LongTermDebtCurrent = $10.91B
quant AAPL FY2025
us-gaap:LongTermDebtCurrent = $12.35B
quant AAPL FY2022
us-gaap:CommercialPaper = $9.98B
quant AAPL FY2023
us-gaap:CommercialPaper = $5.99B
quant AAPL FY2024
us-gaap:CommercialPaper = $9.97B
quant AAPL FY2025
us-gaap:CommercialPaper = $7.98B
quant AAPL FY2022
us-gaap:StockholdersEquity = $50.67B
quant AAPL FY2023
us-gaap:StockholdersEquity = $62.15B
quant AAPL FY2024
us-gaap:StockholdersEquity = $56.95B
quant AAPL FY2025
us-gaap:StockholdersEquity = $73.73B
quant AAPL FY2022
us-gaap:CashAndCashEquivalentsAtCarryingValue = $23.65B
quant AAPL FY2023
us-gaap:CashAndCashEquivalentsAtCarryingValue = $29.96B
quant AAPL FY2024
us-gaap:CashAndCashEquivalentsAtCarryingValue = $29.94B
quant AAPL FY2025
us-gaap:CashAndCashEquivalentsAtCarryingValue = $35.93B