Tech News

Apple now controls 10 percent of all corporate cash*, Microsoft in second place

(*10*)

appleuvillagestoreWe’ve recognized for some time that Apple controls an enormous hoard of money, nevertheless it’s often laborious to place into context simply how a lot cash Apple’s coffers symbolize. In keeping with new numbers from Moody’s, it’s actually large, with a couple of caveats.(*10*)

(*10*)

The Wall Street Journal reported today that Apple’s $147 billion in complete money reserves (each home and abroad) symbolize 10 percent of all U.S. corporate money, excluding money held by monetary establishments. (*10*)

(*10*)

Microsoft is a distant second, holding $77 billion in its coffers. Google, Cisco and Pfizer are the third, fourth and fifth richest non-financial firms, respectively. Tech firms make up an enormous chunk of essentially the most rich firms not simply because they’re making rather a lot of cash (they’re) but in addition as a result of it’s straightforward for them to base their monetary operations in low-tax international locations like Eire in order to keep away from U.S. corporate taxes.(*10*)

(*10*)

That additionally makes the numbers extra sophisticated. Since most of Apple’s money ($102 billion, based on numbers released in May) is held abroad, they will’t simply repatriate that willy-nilly. Really bringing that cash again into the U.S. would imply exposing themselves to an enormous tax legal responsibility, which is why the corporate is completely joyful to let it proceed to take a seat and develop abroad.(*10*)

(*10*)

The identical factor goes for many (if not all) the opposite companies on the record, which every have their very own separate combine of abroad and home money. That signifies that really making a real apples-to-apples comparability is pretty troublesome. (*10*)

(*10*)

If there’s one factor we are able to take out of all this, although, it’s that Apple and corporations prefer it have a complete lot of cash sitting round, they usually have an enormous revenue incentive to maintain holding on to it.(*10*)

(*10*)

[This post has been updated since it was originally published.](*10*)

(*10*)

(*10*)

Back to top button

Adblock Detected

Please stop the adblocker for your browser to view this page.