What does Apple do with all its cash?
Any excess cash is better used in different ways. In the case of Apple, it's investment in securities. These investments allow Apple to hedge against currency-related risks, and receive some revenue to keep up with inflation.
Apple's $166 Billion Cash Problem
The technology company now has cash and investments of $166 billion. That's a staggering amount, totaling 6% of the holdings of all S&P 500 companies. To its credit, Apple is trying to dispense of the cash using both dividends and buybacks.
Apple's cash can be used to reinvest in the company or pay dividends to its shareholders. Another important aspect of Apple's financial statements is its debt. While Apple does have some debt, it is relatively low compared to other companies.
Apple had around $166.3 billion in cash during its fiscal second quarter in 2023. The company regularly maintains one of the largest cash piles in the U.S.
Apple has significant cash and short-term investments, making its debt less of a concern. Apple's healthy balance sheets have made it a considerably attractive investment.
You can click the graphic below for the historical numbers, but it shows that Apple had US$109.3b of debt in July 2023, down from US$119.7b, one year before. However, because it has a cash reserve of US$62.5b, its net debt is less, at about US$46.8b.
Apple has three times as much cash on hand as does the US government, and over twice as much as does the UK.
Total debt on the balance sheet as of December 2023 : $108.04 B. According to Apple's latest financial reports the company's total debt is $108.04 B. A company's total debt is the sum of all current and non-current debts.
| S.No. | Name | CMP Rs. |
|---|---|---|
| 1. | Coal India | 480.00 |
| 2. | TCS | 4128.30 |
| 3. | Infosys | 1701.65 |
| 4. | ITC | 404.60 |
Soon thereafter, Apple disclosed that it would become a cash neutral company. In Apple's Q1 2018 earnings call, Luca Maestri, Apple's CFO, explained this new goal with the following words: Tax reform will allow us to pursue a more optimal capital structure for our company. Our current net cash position is $163 billion.
How much cash does Warren Buffett have?
Berkshire's record cash and equivalents relative to its portfolio are in line with the firm's 20-year average.
The ownership structure of Apple (AAPL) stock is a mix of institutional, retail and individual investors. Approximately 48.78% of the company's stock is owned by Institutional Investors, 0.11% is owned by Insiders and 51.11% is owned by Public Companies and Individual Investors.
| Logo used since 1998 | |
|---|---|
| Apple Park is the company's headquarters in Cupertino, California, in Silicon Valley. | |
| Net income | $97.00 billion (2023) |
| Total assets | $352.58 billion (2023) |
| Total equity | $62.15 billion (2023) |
What does that look like on a brokerage statement? Check out the above chart and you'll see that if you invested $1,000 in Apple stock 20 years ago, it would today be worth almost $530,000. The same $1,000 invested in the S&P 500 would have theoretically turned into $6,186 over the same period.
On the other hand, the Android operating system of Google competes with the iOS of Apple, found in iPhones. Get a good understanding of its long-term strategy by going through the Google vision statement.
Moreover, according to a study by Bank of America, millionaires keep 55% of their wealth in stocks, mutual funds, and retirement accounts. Millionaires and billionaires keep their money in different financial and real assets, including stocks, mutual funds, and real estate.
With an operating margin of 29.23%, Apple ranks better than 97.83% of 2443 companies in the Hardware industry. This indicates strong profitability. Growth is a crucial factor in a company's valuation. Apple's 3-year average revenue growth rate is better than 86.01% of 2337 companies in the Hardware industry.
At Apple, we make sure women earn the same as men performing similar work. As part of that effort, your salary history is history — we won't ask. Every employee here also has the opportunity to become an Apple shareholder, because all are eligible for stock grants and also a discount when purchasing Apple stock.
Definition of Total Debt
McDonald's reported total debt of 49.836 B for the latest quarter ending September 30, 2023 on its balance sheet.
With a market capitalization of 2.75 trillion U.S. dollars as of May 2023, Apple was the world's largest company that year. Rounding out the top five were some of the world's most recognizable brands: Microsoft, Saudi Arabian Oil Company (Saudi Aramco), Google's parent company Alphabet, and Amazon.
What is Apple's largest income?
iPhone statistics
iPhone is Apple's most valuable product and has, since 2008, been its main source of revenue. Even though Apple has diversified its product line with Watch, AirPods and services, iPhone is still responsible for 52% of its revenue.
Even giants such as Coca-Cola, with a 2022 revenue of $42.3 billion, and McDonald's at just over $23 billion, trailed behind Apple Services. Apple's services had more revenue than Nike and McDonald's combined, which was $72.3 billion.
Total debt on the balance sheet as of September 2023 : $46.43 B. According to Walt Disney's latest financial reports the company's total debt is $46.43 B. A company's total debt is the sum of all current and non-current debts.
Analysis. Amazon.com's total debt for fiscal years ending December 2019 to 2023 averaged 130.7 billion. Amazon.com's operated at median total debt of 139.8 billion from fiscal years ending December 2019 to 2023. Looking back at the last 5 years, Amazon.com's total debt peaked in December 2022 at 169.9 billion.
Total debt on the balance sheet as of September 2023 : $26.33 B.
