How Much Cash Does Apple Inc (AAPL) Have and What is it Doing With it?

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Nobody doubts the tech giant’s ability to generate money, but how much cash does Apple Inc (NASDAQ:AAPL) really have at hand? A quick glance at the firm’s latest quarterly SEC filing indicates that cash and cash equivalents, along with short- and long-term securities, add up to a whopping $164.4 billion. According to information stemming from US Trust – the Bank of America’s wealth-management sector – Apple now has a cash position triple the size of the US government’s.

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Of course, having so much available cash is never a bad thing, yet large investors are slowly becoming restless regarding the lack of use the company has made of its position. After all, shareholders are not very interested in the firm hoarding reserves, and would rather see share buyback programs put in place, which in turn would spur earnings per share to new heights. Such was at least the proposal that Carl Icahn has been shoving down Apple Inc (NASDAQ:AAPL)’s CEO’s, Tim Cook, throat over the past year during their recurring lunch dates.

Icahn has a huge position in Apple and there is no doubt that he, along with other major shareholders, would reap huge benefits from the implementation of a new buyback program. Nevertheless, the Apple is yet to be convinced that their money is better spent on unlocking value for shareholders, rather than focusing on their primary activity: the development and sale of technology.

Whatever Tim Cook eventually decides to do with the large amount of cash Apple Inc (NASDAQ:AAPL) has at hand, will surely have consequences. However, for now the money can rest easy in banks spread across the US and overseas, while the company continues to improve its cash flow, thanks to the expansion of its product offerings.

Apple Inc (NASDAQ:AAPL) does not seem to be in any rush to put its well-earned money to work, especially since it is growing continuously thanks to solid sales volume. As long as Tim Cook can keep shareholders happy with their current position, there really should not be any doubts as to how much cash Apple has: it was $164.4 billion as of last quarter, but it will most likely hit the $200 billion mark soon.

Disclosure: Pablo Erbar holds no position in any stocks or funds mentioned.

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1 Comment

  1. When was this article written, 2004? Apple is buying back shares like there’s no tomorrow. Mr Icahn seems a lot happier in the past year because of this.

    The rest of the cash pile is held overseas so it can’t be used without incurring taxes for repatriation.

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