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AAPL Stock: 114.64 ( -3.8 )

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Apple leads US corporations in growing concentration of cash

updated 04:20 pm EDT, Wed March 14, 2012

Cash would have declined in 2011 without Apple

Apple leads US corporations in terms of cash reserves, notes Moody's Investors Service's Richard Lane. In all US corporations are said to hold about $1.2 trillion. Apple controls $97.6 billion; other tech companies in the top five include Microsoft with $51.7 billion, Cisco with $46.7 billion, and Google with $44.6 billion. Drugmaker Pfizer is fifth.

Lane's report notes that Apple is exerting a disproportionate influence. The company accounts for $64 billion of the $179 billion increase in US corporate cash since 2009, or about 36 percent. In 2011 overall cash would have fallen by $6 billion had Apple not seen a $46 billion growth. "Unless Apple changes its philosophy towards liquidity by instituting a one-time or ongoing common dividend, or if Apple starts to buy back stock, we estimate Apple's cash balances could increase by more than $50 billion in 2012 and approximate $150 billion," the report states.

Most corporate cash is actually sitting overseas, totaling about $700 billion, or 57 percent. Apple has 66 percent of its money overseas, or $64 billion. Microsoft and Cisco are each rated at 89 percent. Google, by contrast, has just 48 percent overseas, or $21.2 billion.




by MacNN Staff

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Comments

  1. global.philosopher

    Joined: Dec 1969

    +5

    Surprising

    I didn't realise Google had so much money up their sleeve. I remember stories going around that the MM pruchased sucked up 2 years of Google profit which means they would have had to have $44.6 billion 2 years ago which doesn't seem realistic.

    Just shows that journalism these days is like statistics....you can make anything sound however you want.

  1. Arne_Saknussemm

    Joined: Dec 1969

    -8

    Apple is way too big.

    It should be split up,

    or at least made to spend some of it's money on US ground in the form of state of the art robotics manufacturing factories like Canon's.

  1. iphonerulez

    Joined: Dec 1969

    +4

    $150 billion seems like a nice

    round number. I'd like to see Apple make that much cash and dangle it in the face of impatient shareholders. As a shareholder, it doesn't faze me one bit. I'd like to see Apple corner the HD display and flash memory market and Apple can spend whatever it takes to do that. Too bad Apple will never be able to pull that overseas money back home without being taxed heavily. Apple better start handing out bribes to people in high places.

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