Understanding Apple and its huge pile of cashUnderstanding Apple's cash is as difficult and important as understanding Apple itself.
Apple is one of the most successful and profitable companies in the history of companies. Despite a series of dividends and stock buy-backs, Apple still holds almost $269 billion in cash and investments. That's not just unusual, it's unprecedented. It's a sum so vast it fills financial analysts with furor and sends bloggers on back seat buying bonanzas.,
Understanding Apple's cash is as difficult and important as understanding Apple itself. That's what makes this Apple cash FAQ by Horace Dediu such a great read,
From Asymco:
As individuals we think that having lots of cash makes us rich. For companies it's the opposite. Cash is a liability. If you come across a company that is cash rich and has nothing else, its enterprise value will be zero. Companies are valued on their future cash flows, meaning their ability to generate cash, not how much they managed to keep. In other words, cash is a ...
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Understanding Apple and its huge pile of cash
