Descriptive analysis reveals positive effects of debt on financial performance indicators in Apple, suggesting effective capital strategies.
This paper studies the effect of capital structure on financial performance using Apple Inc. as a representative case study. Through integration of theoretical aspects of Modigliani-Miller, Trade-off theory, Pecking Order Theory, it looks at how Apple strategically uses debt to affect its major financial indicators like ROE, ROA and profit margin from 2019 to 2023. Studied through a descriptive analysis, it was found that with a conceptual framework regression model, there was a positive regression between moderate leverage and a better performance definition. Apple’s example shows how a wealthy, cash-rich company can use debt not because they have to but as a way to increase shareholder wealth and capital efficiency. This information is useful for corporate leaders and financial strategists aiming to develop an effective capital structure across diverse markets.
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S. L. Tang (2025) studied this question.
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