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Apple Cash Balance

What sense would it make for Apple to have so much in Cash?

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what sense? did you see their NI and operating cash flows for the past +10 years?? Their margins used to be off the charts.

Be yourself. The world worships the original.

What do you suggest they do with it? 

$245 B in cash, $115 B in Debt.  After paying dividends they’re still raking in at least $40 B per year. They repurchased $70 B worth of stock last year. $70 BILLION.

Trading 15x, basically their average for the last 10 years. Growth seems to have slowed. No innovative products since Jobs died. Company just humming along slowly. Seems to me like they are just relying on their apple-lovers to keep paying extraordinary amounts for products just because of the brand.

The cash puts a floor on the stock price for one. $25-$30 of stock price in net cash, and provides dry powder if/when sht hits the fan and perhaps they can buy something else at a large discount. 

it make sense. prices are expensive. rates are low. borrow, pay 3% in interest, get a treasury yield to offset it which is 2% right now. that 1% net interest is tax deductible so its prolly 0.6% in net cost per debt. 

id sit on that **** and wait for a more opportune time. 0.6% cost is not a big deal. 

id much rather they do this, than acquire a pos company. and at these prices. most companies are pos.

I love my cheese. I got to have my cheddar.

It made sense for Apple to hold this cash abroad when cash repatriation would have resulted in substantial tax bills. However, since they have been offered lower tax rates by Trump, they are starting to reduce their cash balance to zero over time. A lot of this cash will be used for dividends and buy backs, that is, Apple is just giving it to shareholders. 

https://www.ft.com/content/3bc20dae-079b-11e8-9650-9c0ad2d7c5b5

“Visit the Water Cooler forum on Analyst Forum. It is the best forum.”
- Everyone

wait i thought companies will raise wages, give bonuses, invest in PPE. sigh

T_T

https://taxfoundation.org/repatriation-tax-holiday-hangover/

"You want a quote? Haven’t I written enough already???"

RIP

igor555 wrote:

wait i thought companies will raise wages, give bonuses, invest in PPE. sigh

T_T

https://taxfoundation.org/repatriation-tax-holiday-hangover/

Wait, you’re telling me the GOP lied about tax cuts?

Again?

Probably a good move by apple to hold onto the cash for now, they aren’t being innovative internally, they’ll need the cash to buy something in the downturn.