Is Apple holding too much cash? (2023)

Is Apple holding too much cash?

Apple has too much cash. The technology company now has cash and investments of $202.6 billion. That's a staggering amount, totaling 7% of the holdings of all S&P 500 companies.

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. The key question should then be: Why is Apple sitting on so much marketable securities?

Yet many investors and Wall Street analysts see signs of trouble that Apple's AAPL, +1.88% cash and short-term investments have shrunk to $48 billion as of the end of June 2022 from $107 billion at the end of 2019 — a decline of 55%.

As of FY21 the company's total debt sits at $287.91 billion. However, Apple's total current liabilities for FY21 came in at $125.48 billion, meaning 43.58% of Apple's total debt is maturing in FY22. Apple has been producing double-digit bottom-line growth with high debt levels that are now beginning to thin.

With approximately $200 billion of cash on the balance sheet, Apple's financial strength has never been stronger. However, Apple has a growing dilemma on its hands concerning its cash and capital return program. Apple is unable to keep the pace of share buybacks and dividends in-line with its foreign cash generation.

Apple cash on hand for the quarter ending June 30, 2022 was $48.231B, a 21.82% decline year-over-year. Apple cash on hand for 2021 was $62.639B, a 31.12% decline from 2020. Apple cash on hand for 2020 was $90.943B, a 9.56% decline from 2019.

Apple long term debt for the quarter ending June 30, 2022 was $94.700B, a 10.45% decline year-over-year. Apple long term debt for 2021 was $109.106B, a 10.58% increase from 2020. Apple long term debt for 2020 was $98.667B, a 7.47% increase from 2019.

Apple (AAPL) on Thursday reported its profits declined by nearly 11% in the three months ending in June from the same period a year ago as the company works through an economic downturn and supply chain disruptions in China due to the country's zero-Covid policy.

Which company does not have debt?

According to the Apple's most recent balance sheet as reported on October 29, 2021, total debt is at $124.72 billion, with $109.11 billion in long-term debt and $15.61 billion in current debt. Adjusting for $34.94 billion in cash-equivalents, the company has a net debt of $89.78 billion.

Alphabet long term debt for 2020 was $13.932B, a 205.93% increase from 2019.

Currently, Apple has cash reserves of $178 billion with which the company could theoretically buy 480 out of 500 S+P 500 companies. The equity ratio and the current cash reserves give the company an extremely high financial stability.

Apple has the Financial Strength Rank of 7.

It is based on these factors: 1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

It's highly unlikely that Apple stock will reach $1000 anytime in the next 10 years and here's why. Apple's stock price is currently around $150 per share, so it would need to increase by over 700% to reach $1000 per share. While this is certainly possible, it seems highly unlikely in the near future.

(NASDAQ:AAPL) which is among the companies with the most cash reserves in America. Apple Inc has nearly $200 billion in cash and marketable securities.

"Supply constraints caused by COVID-related disruptions and industrywide silicon shortages are impacting our ability to meet customer demand for our products.

Netflix's total debt stood at $14.5 billion at the end of March. The company does have around $6 billion in cash balancing that out, but at any given time it also has billions in short-term content liabilities it must pay. Netflix paid $188 million in interest during the first quarter, which annualizes to $752 million.

According to the Amazon.com's most recent balance sheet as reported on October 29, 2021, total debt is at $51.05 billion, with $50.05 billion in long-term debt and $1.00 billion in current debt. Adjusting for $29.94 billion in cash-equivalents, the company has a net debt of $21.11 billion.

How much is Tesla's debt?

Tesla long term debt for the quarter ending June 30, 2022 was $2.898B, a 63.18% decline year-over-year. Tesla long term debt for 2021 was $5.245B, a 45.4% decline from 2020. Tesla long term debt for 2020 was $9.607B, a 17.42% decline from 2019.

First of all, a loss leader implies that a product is being sold at a loss to lead to the sale of something else at a profit. But Apple doesn't sell products at a loss. Even the Apple TV is not being sold at a loss (despite some speculation to the contrary).

Apple has retained the title of the world's most valuable brand following a 35% increase to US$355.1 billion – the highest brand value ever recorded in the Brand Finance Global 500 ranking.

Stock Price Forecast

The 37 analysts offering 12-month price forecasts for Apple Inc have a median target of 185.00, with a high estimate of 220.00 and a low estimate of 136.00. The median estimate represents a +17.56% increase from the last price of 157.36.

Apple is America's richest company that isn't a bank, with nearly $250 billion in cash - Vox.

Marketable securities are investments that can be quickly and easily turned into cash. A bulk of Apple's marketable securities are held in U.S. Treasuries.

Referencing his preference to hold at least $30 billion in cash and cash equivalents at Berkshire, Buffett said, "We want your company to be financially impregnable and never dependent on the kindness of strangers (or even that of friends)."

New York (CNN Business) Even the world's richest person needs financial advice. That's great news for Morgan Stanley, the investment bank of choice for Elon Musk.

Bank of America, Citibank, Union Bank, and HSBC, among others, have created accounts that come with special perquisites for the ultra-rich, such as personal bankers, waived fees, and the option of placing trades. The ultra rich are considered to be those with more than $30 million in assets.

Jeff Bezos has amassed a $166 billion fortune since founding Amazon in 1994. He's spent his money on charity, unusual ventures, and personal projects like Blue Origin. Bezos stepped down as Amazon CEO in mid-2021 after seeing a pandemic-era surge in wealth.

Can apples reach 1000?

It's highly unlikely that Apple stock will reach $1000 anytime in the next 10 years and here's why. Apple's stock price is currently around $150 per share, so it would need to increase by over 700% to reach $1000 per share. While this is certainly possible, it seems highly unlikely in the near future.

Apple's total net sales amounted to 365.82 billion U.S. dollars in their 2021 financial year, a slight increase from the historical record of 74.52 billion U.S. dollars in financial year 2020.

Apple is the most valuable company in the S&P 500 as of August 2022 and has a market value of more than $2.7 trillion. Apple earned nearly $109 billion in operating income and $5.61 in diluted earnings per share during its 2021 fiscal year.

Apple total assets for the quarter ending June 30, 2022 were $336.309B, a 1.96% increase year-over-year. Apple total assets for 2021 were $351.002B, a 8.37% increase from 2020. Apple total assets for 2020 were $323.888B, a 4.32% decline from 2019.