If Apple’s cash hoard was its own company, it would be the 13th largest in the world

“Apple’s enormous cash hoard grew to $246.09 billion in the fiscal fourth quarter, up $8.49 billion from the previous quarter,” Christine Wang reports for CNBC. If Apple’s cash pile was its own public company, it would be the 13th largest in the world.”

“The company’s cash reserves have long fueled speculation of acquisitions that Apple might make,” Wang reports. “Apple keeps most of its cash outside the U.S. for tax reasons, but President Donald Trump and the Republican-controlled Congress are expected to change rules on repatriation of cash stored overseas, which could make it easier for Apple to spend some of the money on acquisitions without taking a major tax hit.”

Wang reports, “Apple CEO Tim Cook told CNBC, ‘Repatriation is front and center. That is good for the country and Apple.'”

Read more in the full article here.

MacDailyNews Take: With $246.09 billion on hand, Apple could buy Bank of America (based on current market value), and still have $8 billion left over.

Again, as we wrote last September: Let’s not do another “one-time-only” (smirk) repatriation holiday. Let’s fix the broken U.S. corporate tax code instead. Let us eschew the easy way out, that fixes nothing in the long run, and choose to do the hard work instead.

SEE ALSO:
BlackRock to ask how Apple, S&P 500 companies would use cash from U.S. tax holiday backed by President Donald Trump – January 24, 2017
BlackRock loads up on Apple shares ahead of earnings – January 25, 2016
BlackRock founder Sue Wagner joins Apple’s board of directors – November 17, 2014
Sue Wagner joins Apple’s Board of Directors; Bill Campbell retiring after 17 years of service – July 17, 2014

18 Comments

    1. Agent Orange is trying to fix America for you and me! Have some respect! He isn’t a career politician and getting things done every day and so far has kept all campaign promises! What other candidate is and has done that?….None!

      1. I’ll remind you that president Obama signed an executive order closing Guantanamo bay in his first week in office, and its still open. Executive orders that congress doesn’t agree with, or are overturned by courts, do not get done. So, aside from mr oranges mess of a rollout this past weekend, none of what he’s done so far is actually “getting done”. And when president Obama was signing executive orders because the republican gongress wouldn’t work with him, he was called “king Obama”… the hypocrisy of the right wing knows no bounds. You can obstruct a Supreme Court nominees for a year, and when democrats pull the same tactic they’re “disgusted”, and “ashamed”…: your party is full of liars, and the man at the top is the worst one. Over 90% of what comes out of the mans mouth is demonstrably false. Stop believing this crap. Now, if president orange face does well? Then great. We all do well. But his policies are reckless and his team does not understand or care how the government works. Steve bannon is quoted as saying he wants to “destroy the state” e calls himself a “Leninist”… seriously, look it up.

        And unlike when the right wing criticized president Obama, we’re not making shit up out of whole cloth (birth certificate nonsense, FEMA camps, myriad other false bullshit, etc..), just using his own actions and words against him.

        1. “… we’re not making shit up …”

          Well that’s a total crock of crap. You libtards live by emotion and lack of logic, based on the severity of your menstrual cycles. We are seeing your kind every day out protesting anything and everything before you even have any facts. Go back to your feminist social justice warriors and stfu.

          1. That’s complete projection. Have you ever listed to right wing radio or been to a trump rally? It’s all pure id fear and emotion.

            So you’re saying FEMA camps are real? Give me actual evidence and I’ll believe you. But there isn’t any because it’s a fucking lie, and you guys would rather see what you believe instead of what rational people do and believe what they see.

          2. And you didn’t address that mr orange face lies constantly… if you have any intelligence you know these people are full of crap, and yet you believe it any way. You want a wall? Great. Guess what? That will INCREASE illegal immigration, especially since we’ve been at net 0 for 12 years, with an outflow since 2007! But no, don’t believe actual facts, just use your pre existing bias against brown people…

  1. Here’s a thought, take ONE percent of that, dedicate it UPDATE ALL your products and not just the iPhone and iWatch and iPad. MacPro, iMac, Displays, Mac Mini, Software, etc.. so many of us can keep up with the OS and 3rd party software we want to work with. Please, sign this petition to remove Tim CooK (a.k.a. – Pipeline Tim) for the failure to be aggressive with updates, growth and vision. AppleTV is loosing the battle in that eco system. Tim should take the R&D team from Samsung out to dinner, because without their clusterF, the sales might not have been so grand as he thinks. I call this quarter lacking and lucky. Remove Tim!!
    Take 10 seconds out and sign this.
    https://www.change.org/p/apple-board-of-directors-remove-tim-cook-as-ceo-of-apple

  2. Apple is rapidly losing ground as a product company and pissing away prior first-mover advantage because its rudderless and paralyzed. And the investment case has substantially weakened along the way despite the love many of you have for the cash hoard. Apple generated 57% EBIT ROI just five short years ago and now 29%. Is it the business side? Partially: EBIT has only grown at a compounded 1.4% over the last five years; but germane to this post on cash, at the same time Apple has been unable to find anything material to invest in–either internal of external–and instead packed the vault with low-yielding investments that have materially diluted returns. You shouldn’t love this, and don’t miss the point here–I love cash IF there’s a strategy for turning it into value-adding rather than value-destroying investments.

    In 2012 it carried about $39B in cash and short term marketable securities when a 12-month Treasury yielded 0.15%, and $92B in long-terms (which $35B low-yielding US/Munis and $41B highly-rated corporates when the average global yield was 3.34%). That blends to 2.36% yield at best on 74% of the entire asset base.

    In 2016 the investment portfolio comprised $47B in cash & short-term (avg 0.52% yield at best) and $170B in long-terms ($30B US/Muni and $114B highly-rated corporates when global yield was 2.65%). 2.05% blended return again on 74% of the company.

    The negative effect on returns from a baseless buildup in this investment portfolio is profound.

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