“Apple is generating obscene amounts of cash,” Neil Cybart writes for Above Avalon. “The company recently reported nearly $6 billion of free cash flow during what is typically its weakest quarter of the year. Over the last 12 months, Apple earned $51B of free cash flow. This is more than any other company earned.”
“It is easy to chalk up Apple’s financial success to the iPhone and call it a day. However, upon closer examination, Apple’s business model predisposes the company to cash generation unlike any other firm in Silicon Valley,” Cybart writes. “In fact, Apple currently possesses the best business model in the world when it comes to generating cash. ”
“Apple is in a financial league of its own,” Cybart writes. “Apple’s $224B of trailing twelve month (TTM) revenue was nearly as much as that of Amazon ($143B), Alphabet ($95B), and Facebook ($33B) put together… Apple’s $60B of TTM operating income was nearly 50% more than the combined operating income of Alphabet ($24B), Facebook ($15), and Amazon ($3B)… Apple’s $64B of operating cash flow was nearly as much as that of Alphabet ($36B), Facebook ($19B), and Amazon ($17B) combined… Apple’s $51B of TTM free cash flow is $3B more than the free cash flow produced by Alphabet, Facebook, and Amazon combined.”
Tons more in the full article – very highly recommended – here.
MacDailyNews Take: When will Wall Street fairly value Apple, if ever?
[Thanks to MacDailyNews Readers “Fred Mertz” and “Dan K.” for the heads up.]