May 02, 2017
Stocks

Question: How Much Cash Does Apple Have in the Bank?

Answer (from WSJ; subscription): About $250 billion!

A truly amazing stat that had to be shared. Here’s how it has grown over time:

Questions for students:

  • Looking at the chart, what seems to be the milestone for the company that has led to Apple gushing cash?
  • Where is most of the money held? US or foreign subsidiaries?
  • Why not just return all the money back to the U.S.?
  • What countries have a GDP of about $250 billion?
  • What are Apple’s options on how they can use this stockpile?
  • What does the growth in cash tell you about Apple’s competitive position and profitability?
  • How much do investors care about this cash? Why would you care if you were an investor? When did Apple last issue a special dividend to investors?

Related articles:

  • Apple has a record $250 billion in the bank (Ars Technica)
  • Apple has over $250 billion in the bank (USA Today)

 

 

 

 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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