With the recent announcement of yet another record quarterly earnings report by Apple, their cash on hand continues to accumulate. The most recent quarter brought in an additional $6.1 billion, bringing the staggering total to $65.8 billion. To put this cash into perspective, it exceeds the GDP of Croatia.
Asymco provides further insight into Apple’s cash into the following chart:
Note that the increase of cash in the recent quarter is net of the $900 million in prepayments Apple has made to secure component contracts.
Here are some more perspectives of just how much cash Apple has on hand, via Horace from Asymco:
- The funds are big enough to place Appleâ€™s CFO office in the top 100 largest fund managers in the world and larger than any hedge fund manager.
- Cash growth in one quarter was higher than the market cap of many companies. For example, if pre-payments were added back, the cash increased by about the market cap of Motorola Mobility.
- Current cash is worth more than Nokia, RIM and Motorola Mobilityâ€™s market caps, put together.
- Appleâ€™s cash is worth half of Googleâ€™s enterprise value.
- About two years ago, in January 2009 the stock traded at a price of $78 with at least one analyst placing a target of $70 on the stock. Today Appleâ€™s cash is worth $67/share.
- If you owned $100,000 of Apple stock, $19,000 of that would be cash and only about $80,000 would be â€œat riskâ€ capital.
- If Apple had no revenues, the current cash would sustain operations (SG&A and R&D) for over 7 years or until the middle of 2018.
Steve Jobs said during their earlier Q4 conference call that this cash gives Apple ‘tremendous security and flexibility’. I can only imagine what potential acquisitions Apple might have lined up–Netflix anyone?