Apple Inc. (AAPL) 10-K Red Flags
Risk signals extracted deterministically from Apple Inc.’s SEC 10-K/10-Q XBRL filings — no LLM, every finding cites the underlying data.
Detected red flags (12)
- Receivables outpacing revenue: Accounts receivable grew +19.1% YoY vs revenue growth of +6.4%. The +12.6% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Earnings-cash flow divergence: Net income grew +19.5% while operating cash flow declined -5.7%. This divergence may indicate accrual-based earnings inflation — non-cash gains, aggressive revenue recognition, or working capital absorption. The accrual ratio (NI − OCF) is deteriorating.
- NEW: Restatement of financial statements in latest filing: The term "restatement of" "previously issued" appears in recent 10-K/10-Q filings but was NOT present in the prior 24-month period. This is a new risk disclosure that warrants attention. Found in 5 filing(s).
- NEW: Impairment charge: Impairment charge appears in recent filings but not in the prior 24-month period. Monitor for materiality.
- Endogenous analysis: Revenue grew +6.4% but receivables grew +19.1% — the receivables-to-revenue gap suggests growth may be partially driven by extended credit terms rather than genuine demand. If DSO continues to rise, a revenue reversal or bad-debt charge could follow.
- 4 new XBRL disclosure(s) in latest filing — expanding reporting scope.
- 20 disclosure(s) dropped from prior year — reduced reporting granularity.
- 2 new risk-language term(s) detected in filing text: Restatement of financial statements, Impairment charge.
- Market cap $4.62T at $316.83 per share.
- Trailing P/E 42.47, P/S 11.11, P/B 43.00.
- Receivables outpacing revenue: Accounts receivable grew +19.1% YoY vs revenue growth of +6.4%. The +12.6% spread suggests extended credit terms, channel stuffing risk, or collection deterioration. Investigate the allowance for doubtful accounts and DSO trend.
- Earnings-cash flow divergence: Net income grew +19.5% while operating cash flow declined -5.7%. This divergence may indicate accrual-based earnings inflation — non-cash gains, aggressive revenue recognition, or working capital absorption. The accrual ratio (NI − OCF) is deteriorating.
Filings & ownership
- Latest annual report (10-K) filed Oct 31, 2025.
- Latest quarterly report (10-Q) filed Jul 31, 2026.
- 14 recent 8-K material-event filings in the index.
- Recent insider Form 4s: 0 buy vs 6 sell transactions — net selling $87.6M.
- ~10,000+ recent 13F-HR filings reference Apple Inc.; broad institutional reporting.
- Recent filers include THURSTON, SPRINGER, MILLER, HERD & TITAK, INC., Oak Grove Capital LLC, J Arnold Wealth Management Co.
- 20 recent 13G passive institutional ownership notices.
Full AAPL analyst report
Valuation (DCF & Graham), technicals, macro exposure, risk scorecard and 13F/13D ownership.
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