Apple hoards 10% of US corporate cash
The technology sector is the most flush of all industries, with the top 4 kings holding a collective $329 billion.
Apple's (AAPL) $147 billion cash pile accounts for 10 percent of the overall cash held by U.S. corporates, according to Moody's Investors Service, up from 9.5 percent at the end of 2012.
U.S. corporates held a total of $1.48 trillion in cash as of June 30, up 2 percent from the previous record $1.45 trillion at the end of 2012. The survey covers 1,067 non-financial companies based in the U.S. and rated by Moody's.
Yet Apple's cash hoard is almost double that of Microsoft, for example, which has $77 billion. (Microsoft owns and publishes Top Stocks, an MSN Money site.)
Apple has been active in returning cash to shareholders over the past 18 months. In April, the company pledged to spend $60 billion in buying back its stock by the end of 2015. By June, it had repurchased $16 billion worth of its stock.
However, investors including billionaire activist investor Carl Icahn believe the company should do more. Icahn revealed on Tuesday that he had dinner with Apple CEO Tim Cook and urged him to increase the company's stock buyback program.
Icahn said in August that if Apple would issue a larger share buyback, the stock could be worth as much as $700 a share. Apple shares traded at $487.96 on Tuesday.
Cash not confined to techs
After the technology sector, the health care and pharmaceutical industry is the next most cash-flush sector, according to Moody's. Pfizer (PFE), for example, is sitting on a $50 billion cash pile.
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Why isn't Washington negotiating a fairer tax rate to incentivize them?"
KMick, because the last time that companies said if the tax rate got lowered the companies would bring the money back to the US and create jobs, all the companies did was increase the payout of dividends to stockholders, buyback more of the companies stock, give the CEO, top executives and board of directors increases in pay, cut workers jobs, and ship more jobs overseas. So, yeah, the companies did create jobs, EVERYWHERE ELSE BUT IN THE U.S.!
The article doesn't mention how much of that cash is residing abroad.
I understand these corporations face huge tax bills if they bring the money back into the U.S.
Why isn't Washington negotiating a fairer tax rate to incentivize them?
History proves that even the mighty Pharaohs of ancient Egypt who hoarded their great wealth within enormous pyramids embarked upon a foolish and temporal plan. Money is worthless unless it is spent or invested, and to that end Apple has myopic vision ... akin to that of Mr. Cook. At the very least, and at a significant write-off, they could invest some of their horde of cash into corporate sponsored technical schools around the country where aspiring students can become the next generation of computer scientists, engineers and software/ new product developers. The money apparently is pouring in faster than they can count it...something inventive and productive needs to be done with just a portion of it. Simply invest in talented people, and it will result in a long and prosperous future for the company and the general public. Peace to all ~
Clearly, our nations best are not in the business of politics. We need to figure out how to attract our business leaders into politics and get the rank & file American voters to support them. Somehow those voters need to figure out that empty promises of receiving free money from others is not the solution to unemployment and higher paying jobs - and a better life. Obviously after 5 years its clear a community activist is not going to supply the solutions or earn the necessary respect to lead us out of recession - he is an inexperienced amateur totally out of his league who has divided this country. The gov't shutdown is nothing more than a reflection of the division created under Obama. Our gov't will come together when we have a leader that both sides can respect.
BIG Companies need to have huge cash reserves to deal with market fluctuations and avoid layoffs.
R&D is very expensive, and so is borrowing money, Having money prevents you from having to borrow it. Also if you want to avoid losing control of your publicly traded company it might be a good idea to have some extra cash reserves in order to buy back your own stock
there are some people on here that whine about everything, but have no idea what it takes to actually run a business.
I will predict that every thumbs down this post receives is from somebody with there head up there own a$$
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