Does Apple have more debt than cash?
Apple had $57 billion more in cash and saleable securities on its balance sheet than its debts at the end of the quarter.
In fact, in this case, it points to Apple's financial prowess. The tech giant started borrowing aggressively about a decade ago to take advantage of ultra-low interest rates. This has helped to fund its buybacks and dividends. Moreover, you'd struggle to find a more profitable enterprise than this one.
Total debt on the balance sheet as of December 2023 : $108.04 B. According to Apple's latest financial reports the company's total debt is $108.04 B. A company's total debt is the sum of all current and non-current debts.
Apple's debt ratio of 31% (comparing its debt to assets) has actually come down in recent years. And it demonstrates that there are ample assets backing the company. The business generated an incredible $114 billion in operating income in fiscal 2023. But it only made $3.9 billion in interest payments.
Apple has a low net debt to EBITDA ratio of only 0.27. And its EBIT covers its interest expense a whopping 648 times over. So we're pretty relaxed about its super-conservative use of debt. The good news is that Apple has increased its EBIT by 4.1% over twelve months, which should ease any concerns about debt repayment.
Debt provides you with the opportunity to limit your personal cash investment by leveraging your borrowing power to get external funding for your projects.
Bloomberg Daybreak Europe: Apple's Value Drop (Podcast)
Shares of the company slid 4.1% Thursday, erasing about $113 billion in market value and taking their year-to-date loss back to 11%. Once the world's most valuable firm at more than $3 trillion, Apple has underperformed both the Nasdaq 100 and the S&P 500 in 2024.
Financial Strength
Apple has a terrific balance sheet, with a net cash position of $51 billion as of September 2023. Management has laid out a goal to eventually become cash-neutral, with no set timetable. We don't anticipate the company to hit this target in the next five years, but it should progress toward it.
While never actually filing for bankruptcy, Apple (AAPL) was on the verge of going bust in 1997. At the last minute, arch-rival Microsoft (MSFT) swooped in with a $150 million investment and saved the company.
Apple's CEO Tim Cook is worth $2 billion, according to data sourced from Forbes. That is a staggering amount of money, to be sure. At the time of writing, however, Cook's net worth makes him only the 1,647th richest person on earth.
How much does Apple have in cash?
Cash on Hand as of December 2023 : $73.10 B
According to Apple's latest financial reports the company has $73.10 B in cash and cash equivalents. A company's cash on hand also refered as cash/cash equivalents (CCE) and Short-term investments, is the amount of accessible money a business has.
Apple long term debt for the quarter ending December 31, 2023 was $95.088B, a 4.56% decline year-over-year. Apple long term debt for 2023 was $95.281B, a 3.72% decline from 2022. Apple long term debt for 2022 was $98.959B, a 9.3% decline from 2021.
Risk Analysis of Apple Inc ( AAPL | USA)
"The Risk Score is a relevant measure for the assessment of a stock attractiveness. Apple Inc shows a Risk Score of 9.00. 0 corresponds to a very high risk and 10 corresponds to a very low risk."
It has been consistently ranked as one of the world's most valuable brands. Apple became the first publicly traded U.S. company to be valued at over $1 trillion in August 2018, then at $2 trillion in August 2020, and at $3 trillion in January 2022.
Apple lost $113 billion in market cap after a sweeping antitrust lawsuit.
What's considered too much debt is relative and varies by person based on the financial situation. There's no specific definition of “a lot of debt” — $10,000 might be a high amount of debt to one person, for example, but a very manageable debt for someone else.
$5,000 in credit card debt can be quite costly in the long run. That's especially the case if you only make minimum payments each month. However, you don't have to accept decades of credit card debt. There are a few things you can do to pay your debt off faster - potentially saving thousands of dollars in the process.
Apple clearly lags its largest peers when it comes to growth. According to the Journal, Apple's revenue fell nearly 3% in the fiscal year ending September 2023 and FactSet notes Wall Street expects Apple to generate single-digit growth averaging 5% annually over the next three years.
Bad For AAPL: Hurt By China And AI
The country is a major market for Apple, where Huawei has now been gaining ground and stealing market share away from its peers. The second headwind that Apple is facing is AI. This is a case of a technology from which Apple should benefit, just like most Big Tech companies might.
But since then, a flurry of negative news, plus concern that Apple may be falling behind in artificial intelligence, has dragged down the stock. Shares slipped in early February after services revenue for the December quarter missed estimates, overshadowing an otherwise strong report.
Who owns Apple?
The ownership structure of Apple (AAPL) stock is a mix of institutional, retail and individual investors. Approximately 34.58% of the company's stock is owned by Institutional Investors, 0.11% is owned by Insiders and 65.31% is owned by Public Companies and Individual Investors.
The Apple III (styled as apple ///) is a business-oriented personal computer produced by Apple Computer and released in 1980. Running the Apple SOS operating system, it was intended as the successor to the Apple II series, but was largely considered a failure in the market.
Apple's China problems
But independent research reports that the company's slump is extending into 2024. iPhone sales in China dropped by 24% in the first six weeks of the year compared with the same period a year earlier, according to a March report from Counterpoint Research.
Embracing the Early Failures
It was a costly failure for Apple, but Jobs didn't let it deter his vision. Instead of dwelling on the setback, Jobs learned crucial lessons from the Apple Lisa's failure. He recognized the importance of affordability and ease of use, which paved the way for his next project, the Macintosh.
Elon Musk is worth about 22 billion dollars. Apple is worth over a trillion. He could buy abou 2% of Apple if he liquidated everything he owns (and somehow got full value for it.) While this would be a significant enough position to give him some clout inside the company, it's… a little short of buying out Apple.
