how can we say apple has 100bn$ cash?

Discussion in 'Apple, Inc and Tech Industry' started by emir, Feb 24, 2012.

  1. emir macrumors 6502a

    emir

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    #1
  2. Tinyluph macrumors regular

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    #2
    I'm just guessing but probably because the money is offshore.
     
  3. simsaladimbamba, Feb 24, 2012
    Last edited by a moderator: Feb 24, 2012

    simsaladimbamba

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    Can this from here help? It has a section about "assets", though it also lists around 10 billion USD in cash.
     
  4. emir thread starter macrumors 6502a

    emir

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    so the 100 billion dollars in question is not cash? but all assets? i don't get it. i need a little help here. If that 100 billion is really cash, what's up with the balance sheet of business week which i gave the link of on the original post?
     
  5. rdowns macrumors Penryn

    rdowns

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    Most of Apple's "cash" is list on their balance sheet as long-term investments aka, mainly t-bills which are easily converted to cash if necessary.
     
  6. emir thread starter macrumors 6502a

    emir

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    i still don't get this. so apple doesn't have 100 billion dollars in cash?
     
  7. simsaladimbamba

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    Do you mean in actual cash like this?
    [​IMG]
    That is only 100 to 250 million USD, imagine a pile 400 to 1000 times bigger than that.

    Why should Apple do that?
     
  8. GGJstudios macrumors Westmere

    GGJstudios

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    Yes, they do. The securities listed are considered cash equivalents and can be converted to cash at any time. No major company keeps a significant amount of green cash on hand, because it wouldn't be earning interest. When a company is said to have cash on hand, it means cash equivalents, such as money market funds, T-bills, CDs, etc.
     
  9. rdowns macrumors Penryn

    rdowns

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  10. vrDrew macrumors 65816

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    #11
    Apple's "cash" is the combination of its short and long-term "marketable securities" and the actual cash balances it maintains in its various bank accounts.

    At the end of the last quarter Apple had approx. $67 billion in long-term securities; $20 billion in short-term securities; and a little over $10 billion in cash in the bank. Long-Term generally means Bonds with a maturity of greater than one year: ie. A US Government bond with a maturity date sometime in 2015. Short-term securities are those with a maturity less than 12 months from now: ie. GE 90-day commercial paper.

    "Marketable Securities" is generally used to refer to commercial paper or Government bonds or notes that are said to be highly "liquid" - meaning that they can quickly be sold for cash, without losing a large portion of their value in the process.

    By any reasonable definition, Apple could raise $100 billion in cash in a very short period of time, by selling its long- and short-term securities.

    Marketable Securities does not refer to speculative investments in privately or publicly-traded equities.
     

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