While the market is focused on AAPL's income statement, we decided to
take a quick glance at its balance sheet, where we looked at - what
else - its infamous cash hoard. Once the envy of every company in the
universe, AAPL's cash and equivalents, while still very impressive at a
record $146.8 billion, is potentially a reason of concern. Because while
AAPL's Q4 $9.9 billion in cash from operations were certainly
impressive as a result of the company's recent shareholder friendly
overtures it has been burning cash at a far faster clip than in prior
quarters and spent $7.8 billion in Q4 in dividends and share buybacks.
So much so, that the amount by which its total cash holdings grew in the
quarter was a tiny $140 million, a far cry from prior quarters when it
generated billions in cash in any given quarter. So one wonders: was
this the peak for the most fantastic cash balance growth in history?
We hope to have the breakdown of domestic vs foreign cash soon, although if prior quarters are any indication, this is the 3rd consecutive quarter in which domestic cash has declined and will force the firm to either repatriate some of its offshore cash, or issue even more debt.
Zerohedge
We hope to have the breakdown of domestic vs foreign cash soon, although if prior quarters are any indication, this is the 3rd consecutive quarter in which domestic cash has declined and will force the firm to either repatriate some of its offshore cash, or issue even more debt.
Zerohedge