Apple's margin move — what the filing can and can't attribute

mentor: A margin that moved is only the start. The CFO's question is always: driven by WHAT — price, cost, volumeDefinitionVolumeThe number of shares that changed hands during an interval. Volume is the weight behind a price move: the same price change means different things on heavy versus thin participation, and averages computed without it treat both alike.Volume = shares traded during the interval (sum of trade sizes)Drivers: Participation · Liquidity structure · Event flowFull definition →, or mix? This lesson draws the honest line between what a filed income statement can attribute and what it cannot.

Below are Apple's revenue and cost of revenue for two fiscal years, from one 10-KDefinitionForm 10-KThe audited annual report a US public company files with the SEC — the most complete single document about a business: audited financial statements, management's discussion, risk factors, and the auditor's own opinion. It is the primary source nearly every figure on Echelon grounds to.One 10-K = audited statements + MD&A + risk factors + auditor's reportDrivers: Assurance · Cadence · Restated comparativesFull definition → on SEC EDGAR. The gross marginDefinitionGross marginThe share of each revenue dollar left after the direct cost of producing what was sold. It is the first read on pricing power and production efficiency, and the starting point of every margin analysis.Gross margin = Gross profit ÷ Revenue = (Revenue − Cost of revenue) ÷ RevenueDrivers: Price · Cost · Volume · MixFull definition → moved. Decide which attributions these filed figures actually support.

The income statement shows THAT revenue and cost each changed — it does not quantify a price, volumeDefinitionVolumeThe number of shares that changed hands during an interval. Volume is the weight behind a price move: the same price change means different things on heavy versus thin participation, and averages computed without it treat both alike.Volume = shares traded during the interval (sum of trade sizes)Drivers: Participation · Liquidity structure · Event flowFull definition →, or mix split (that needs data the filing doesn't carry).