Analysis: One area where Apple lags: Its low returns on cash

Comments (6)
AlkalineState wrote:

100 Billion in cash. Maybe they’re saving up for a full Senate instead of buying one candidate at a time, like the oil companies do.

The new iWin from Apple: “Don’t just make gadgets. Make laws.”

Feb 13, 2012 6:41pm EST  --  Report as abuse
sackheim wrote:

Here’s a great idea for improving return on that cash: put just a little bit of it toward ending labor abuses by their suppliers such as FoxConn.

That would preserve Apple’s sky-high brand equity that they’ve built, and could pay off handsomely via long term returns. If Apple can stop foreign labor abuse, their products will maintain their shine.

Does Apple have a problem because of labor abuse by suppliers? You bet! Article archive:

Feb 13, 2012 8:01pm EST  --  Report as abuse
FoxxDrake wrote:

When it reaches 200 Billion…we take 75% (150 billion) and use it to pay for the wars and TARP and the Bush tax cuts. If we take 75% of all this corporate bank roll from all the companies – including the oil companies – (made off subsidies and Chinese slave labor and breaking America) we can cut that deficit in 1/2 easily. Raise the tax rate on capital gains to 50% and …. problem solved.

Feb 14, 2012 10:01am EST  --  Report as abuse
CDN_Rebel wrote:

Maybe it’s the solution to the Greek debt crisis? $200B in 2013 – that’ll do it. Apple could own all the sovereign debt of Greece… if they were really altruistic they would forgive it all!, but if not charge US T-Bill rates and then Greece’s 10 biggest problems vanish at once. Yup, ask Apple to buy $200B worth of 30yr Greek sovereign debt at 4%. Imagine that!! Beats Greeks having to pay 12% on 2yr debt and shores up the world economy. Cmon Apple, DO IT!

Feb 14, 2012 4:57pm EST  --  Report as abuse
Ronm88 wrote:

I’m a little confused about Apple’s return on its investment. If you read its quarterly statement, Apple said that it earned $13.06 billion, but its cash and marketable securities was $97 billion which is up $16 billion from the previous quarter.

Where did the extra $3 billion come from. The only thing that I can think of is that Apple earned $3 billion from its investments, which is a very good return for 3 months (15% annualized or so).

Or … did this money come from somewhere else?

Feb 14, 2012 7:55pm EST  --  Report as abuse
lphock wrote:

All MNCs parked their cash in various locations, under speperate domiciles to protect their bottom line – shielding from country taxes especially in high rates regimes. $100 billion is able to buy many countries and still have the working capital to ensure that those countries prosper.
For US, it is wishful thinking that their cash rich corporates can help when their government and banks in deep sh…

Feb 14, 2012 10:45pm EST  --  Report as abuse
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.