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 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.
The largest part of Apple's investment in recent years was attributed for purchases of marketable securities. In the company's 2023 financial year these investments amounted 29.5 billion U.S. dollars. Marketable securities are debts that are to be sold or redeemed within a year.
Apple once famously borrowed money to pay dividends to its shareholders, while it was sitting on mountains of cash parked in tax haven countries. In this view, companies hold excess cash largely to avoid having it taxed through repatriation.
Apple isn't just borrowing to benefit from inflation. They're strategically deploying this capital in areas that yield higher returns. One such area is stock buybacks. Over the past decade, Apple has reduced its outstanding shares from 26 billion to 16 billion, effectively boosting its stock price.
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.
In its most recent quarterly SEC filing, Apple reported that it had $158.8bn (£94.9bn) in cash and cash equivalents plus short- and long-term securities. US Trust reports that the cash-strapped American government has reserves of just $48.5bn (£29bn).
What Is Apple's Debt? 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.
But If Apple moved this cash back to the U.S., it would face a massive tax bill. So Apple has actually been going into hock to help fund some of its stock buybacks and dividends. The company raised $10 billion in debt last quarter and now has about $47 billion in long-term debt overall.
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Why Apple is borrowing $7 billion while sitting on a $200 billion cash pile?
The borrowing is profitable for the company's shareholders by at least one measure: the company's earnings yield, a measure of how much the company earns relative to its share price, is around 5.6%, while it can borrow for 30 years for less than 3%. Apple's not the only one seizing this golden opportunity.
Paul R. La Monica of CNN Business wrote that while Apple certainly had the financial wherewithal to purchase Disney, it was unlikely they would be willing to do so due to Disney's high market value.
| Symbol | Cash on hand FQ | EPS dil growth TTM YoY |
|---|---|---|
| MSFT D | 81.017 B USD | +22.93% |
| IBKR D | 73.814 B USD | +51.63% |
| AAPL D | 73.1 B USD | +9.20% |
| SCHW D | 67.577 B USD | −27.58% |
Apple has a low net debt to EBITDA ratio of only 0.39. And its EBIT covers its interest expense a whopping 625 times over. So you could argue it is no more threatened by its debt than an elephant is by a mouse.
Total debt on the balance sheet as of December 2023 : $9.57 B. According to Tesla's latest financial reports the company's total debt is $9.57 B. A company's total debt is the sum of all current and non-current debts.
With an Altman Z-Score of 8.34, Apple Inc exhibits a strong defense against financial distress, highlighting its robust financial stability. With a favorable Debt-to-Revenue ratio of 0.29, Apple Inc's strategic handling of debt solidifies its financial health.
Total debt on the balance sheet as of December 2023 : $135.61 B. According to Amazon's latest financial reports the company's total debt is $135.61 B. A company's total debt is the sum of all current and non-current debts.
Total debt on the balance sheet as of December 2023 : $47.69 B. According to Walt Disney's latest financial reports the company's total debt is $47.69 B. A company's total debt is the sum of all current and non-current debts.
As of February 2023, the Japanese car manufacturer Toyota was the company with the highest debt worldwide, amounting to 217 billion U.S. dollars. The Chinese property developer Evergrande followed in second with a debt of roughly 170 billion U.S. dollars, with Volkswagen following in third.
Going by net worth (assets minus liabilities), Disney (at $122.18 billion) is twice as rich as Apple (at $65.34 billion). Going by market capitalization (the total market value of all outstanding stock at current market price), Apple (at $2.08 trillion ) is seven times richer than Disney (at $308 billion).
Does McDonald's make more money than Apple?
Other companies trailing Apple Services include beverage giant Coca-Cola (NYSE: KO) at $42.3 billion, Netflix (NASDAQ: NFLX) at $31.6 billion, and McDonald's (NYSE: MCD) at $23.3 billion. Interestingly, Apple Services' revenue for 2022 was more than that of McDonald's and Nike combined which stood at $72.3 billion.
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.
The ownership structure of Apple (AAPL) stock is a mix of institutional, retail and individual investors. Approximately 49.21% of the company's stock is owned by Institutional Investors, 0.11% is owned by Insiders and 50.68% is owned by Public Companies and Individual Investors.
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.
Still, the company has seen $164 billion in market value erased so far this year, according to data compiled by Bloomberg. While the stock has suffered bigger percentage declines in the first week of January, the losses are the biggest market value destruction at the start of any year on record.
