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Apple Has More Cash Than 38.9% Of The Companies In The S&P Combined (And $413 Billion Less Debt)

Tyler Durden's picture




 

One last quick comparable chart indicating the unique position of Apple in the stock market: with $76.2 billion in Cash, Short and Long-Term Investments, AAPL has more money in the bank than 38.9% of all S&P 500 (ex financials) companies, combined, or 163 companies in total. These are the companies with the least cash, ST and LT investments, starting at the bottom and going up until one gets to a cumulative number just under that of Apple. And here's the kicker. These same 163 companies have a cumulative of $412 billion in debt against their $76.1 billion in cash. Apple's total debt? $0.00.

 

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Sat, 07/23/2011 - 19:47 | 1485764 yabyum
yabyum's picture

They make a good product, I like it. I buy and use it. Can not say that about the banks et al.

Sat, 07/23/2011 - 20:18 | 1485838 CrazyCooter
CrazyCooter's picture

I don't follow stocks really, but am I to presume that Apple accumulated this much CASH selling shares by the shovel full into this massive price ramp? I struggle to believe they are really banking this much profit on iPhones and what not ... where did all the cash come from?

Just curious ...

Regards,

Cooter

Sat, 07/23/2011 - 20:27 | 1485867 darkstar7646
darkstar7646's picture

Foreign buyers, probably not only of shares, but of product as well. See their recent earnings report -- a majority of their product is sold internationally.

Sun, 07/24/2011 - 13:30 | 1487598 e1618978
e1618978's picture

A few years ago when I looked, they had 885k shares, no they have 926k.  I don't think that they are selling shares more than they need to for employee stock options.  Why would they need to with the huge cash pile?

They are really banking that much profit - go look at the cash flow statement.

Sun, 07/24/2011 - 14:50 | 1487886 Dburn
Dburn's picture

Look at their financials, particularly the cash flow statement. This was all internally generated cash flow from earnings and a tiny bit from investments.
The cash flow statements are also clean too.

Sat, 07/23/2011 - 21:16 | 1485903 sasebo
sasebo's picture

And what happens to AAPL's et al. billions when the dollar goes to zero or whatever? Buy any food, clothing, shelter, transportation, energy or health care? How are those companies doing? Looks like they got a lot of debt.

Sun, 07/24/2011 - 15:34 | 1488038 DeadFred
DeadFred's picture

Apple makes a real product with a world-wide market. Who knows how it will react the the Great Finacial Crisis v2.0 but I'd bet they do better comparatively to the fluff stocks that have also soared. Currently the value/fluff spread seems very compressed. Newbie question, is there such a thing as a reverse compression trade, something like shorting Netflix and Lulu to buy Apple? If both go down but fluff is 'downer' you make money. If both go up but Apple is 'upper' you again make money. It seems likely to me that harder times are coming but if inflation is a factor long term I'm not sure that the nominal price of the market would actually decrease. Just wondering.

Sat, 07/23/2011 - 19:48 | 1485765 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

You'd think with all that cash Apple would be able to pay their chinese workers more, you know, as an incentive for them not to commit suicide at work.

Sat, 07/23/2011 - 19:53 | 1485774 Use of Weapons
Use of Weapons's picture

Same company who makes your Apple makes your Dell.

 

Quanta.

 

So, ho-hum. File this under "Good branding" rather than "Product is actually different".

Sun, 07/24/2011 - 13:49 | 1487679 e1618978
e1618978's picture

You must have never seen a macbook pro.  Go look at one, and look at a dell laptop - then open them both up and look inside.

Sat, 07/23/2011 - 20:12 | 1485821 dwdollar
dwdollar's picture

Why?  They can sell the organs.

Sat, 07/23/2011 - 20:26 | 1485863 Zero Govt
Zero Govt's picture

I'd presume a person committing suicide is a personal decision even in quasi-Communist China, not an Apple corporate decision yes?

There was an outbreak of suicides at French carmakers Renault and peugeot last year too.. but once again i'd presume these were personal 'career choices' namely work and commit suicide or leave your job and live... i know which one i'd take!! 

Sat, 07/23/2011 - 19:56 | 1485780 brew
brew's picture

how about a dividend...

Sat, 07/23/2011 - 19:57 | 1485786 Use of Weapons
Use of Weapons's picture

The massive amounts of Stem cells keeping Steve at the helm cost a lot of $$.

Sat, 07/23/2011 - 20:28 | 1485871 Zero Govt
Zero Govt's picture

as apposed the dying brain cells at Microshite, Google and all the other corporate also-rans Apple has steam rollered?

Sat, 07/23/2011 - 20:02 | 1485798 TomGa
TomGa's picture

The Bank of Ireland should have asked Apple for a bail out. Apparently they needed some cash last week to stave off their "Credit Event"...

DUBLIN, July 22 (Reuters) - The International Swaps and Derivatives Association (ISDA) on Friday et July 28 for an auction to settle credit default swaps (CDS) in relation to Bank of Ireland after ruling that the bank had suffered a restructuring credit event.

http://www.reuters.com/article/2011/07/22/bankofireland-idUSWLB837520110722

Sat, 07/23/2011 - 20:02 | 1485804 Use of Weapons
Use of Weapons's picture

They just benefited, retroactively, on the interest rates that Greece was given [3% from memory, or 3.5%].

You'd think this would have... oh wait. Sorry. Yep. It. Is. All. Totally. Broken.

Sat, 07/23/2011 - 20:02 | 1485802 Yancey Ward
Yancey Ward's picture

In other words, a lot of the S&P500 is one bad recession from insolvent.  Big fucking surprise.

Sat, 07/23/2011 - 20:14 | 1485817 bob_dabolina
bob_dabolina's picture

AAPL has more cash than hookers have ass. 

It's so funny how people in America denounce slavery but have no problem enjoying the fruits of it's labor. 

I'm sure those iphones/pads are being manufactured on the cheap by hard working Chinese adults resting comfortably in their middle class lifestyles. 

I love the backlash coming from the African American community advocating equal rights for minor underage working slaves in China. 

Shit...who doesn't love a cheap iphone?

 

Sat, 07/23/2011 - 20:17 | 1485827 dwdollar
dwdollar's picture

They listen to 'music' on their new IPods about YT enslaving them 150 years ago.

That is quite ironic.

Sat, 07/23/2011 - 20:37 | 1485879 bob_dabolina
bob_dabolina's picture

Blacks get treated special so lay off. 

They have it so much harder than the rest of the world. 

I think they want reparations for slavery right? Cool. Are they willing to pay reparations for buying phones made by underage slaves? No. Because blacks are special, and need to be treated differently.

Sat, 07/23/2011 - 20:25 | 1485856 HungrySeagull
HungrySeagull's picture

So we know where the Market will stand. When the great wave rolls through, Apple and others who are debt free will be lighthouses while the rest drown.

We can look forward to future money making moves by Apple to scoop up the carcasses of the dead companies where it suits em.

As far as the Chinese Workers,I have been following that as well and it's nothing more than Sweat shop labor 100 years ago and overuse of Child Labor in the brickyards etc in the same time period.

Back then People worked hard for what they have. Small or great. I think Ford and GE were the Apples of thier day.

Sat, 07/23/2011 - 20:25 | 1485862 oogs66
oogs66's picture

maybe if banks did anything other than produce bonus check's they would have cash on hand as well

Sat, 07/23/2011 - 20:31 | 1485866 MyKillK
MyKillK's picture

The Thunderbolt technology that Intel and Apple have jointly developed is revolutionary. It's Apple's drive to create and embrace new technology like this that makes it so great. Compared to Microsoft which wants to lock people into their existing technology.

 

I can't wait until they decide to make a game console (and that's a when, not an if IMO).

Sat, 07/23/2011 - 20:46 | 1485905 phalosofer
phalosofer's picture

Steve J, the cooldude who does not even support his own daughter financially (biological), can not care less about some chinese workers jumping off the building...of course till you and I start knowing about it and identifying the product with the negative image then a Murdochization step change may.....nahhh we like our gadgets and gee gaws

Sat, 07/23/2011 - 21:37 | 1486028 MyKillK
MyKillK's picture

You say this as if Apple is the only US corporation that employs cheap Chinese labor. Those same Chinese/Taiwanese workers have probably made almost every piece of technology you've used for the last 15 years.

Sat, 07/23/2011 - 20:40 | 1485889 Yancey Ward
Yancey Ward's picture

I have always been extremely underwhelmed by Apple's products, but there is no denying that I am in a small minority, thus I applaud their vision and success.

Sat, 07/23/2011 - 20:46 | 1485906 lolmao500
lolmao500's picture

Nationalize it. You know the government is thinking about it. Nationalize the oil and coal corporations.

Sat, 07/23/2011 - 23:15 | 1486092 Oppressed In Ca...
Oppressed In California's picture

Where's the junk button?

Sat, 07/23/2011 - 23:23 | 1486099 Sacrilege
Sacrilege's picture

There's no junk button anymore; it was kind of pointless. We're now using a comment rating system, where comments get scores. Contributors and an ever expanding list of users (as well as admins, and users) will vote comments up and down, and you can set your threshold in your comment sorting bar. This will make it so you don't have to deal with those comments, at all.

Sat, 07/23/2011 - 20:51 | 1485914 mynhair
mynhair's picture

AAPL needs the cash.  Too expensive to dig out of the ground otherwise.  Prey on t5hose idjuts hitting iTunes.

Sat, 07/23/2011 - 20:54 | 1485923 Everyman
Everyman's picture

So how many eggs does the United States Investing citizens have in one basket???  THIS is market diversification????  Really??  Our options are banks and financials that are actually hiding enormous debt and junk "assets" off book, or a massively overvalued equity that accumulated almost 40% of the invested money??? 

REALLY???

Sat, 07/23/2011 - 21:00 | 1485936 El Viejo
El Viejo's picture

Microsoft keeps a lot of cash too. Must be a tech biz model. Maybe they need it to R&D and buy out their competition.

Sat, 07/23/2011 - 21:01 | 1485938 Seasmoke
Seasmoke's picture

Reggie aint going to like this

Sun, 07/24/2011 - 14:19 | 1487790 e1618978
e1618978's picture

Reggie's predicted margin compression has not shown up yet - gross margin jumped from 39.1% to 41.7% in the last quarterly report.

Sat, 07/23/2011 - 21:15 | 1485972 doomandbloom
doomandbloom's picture

paging Reggie...

Sun, 07/24/2011 - 01:10 | 1486381 imaginalis
imaginalis's picture

+3.1

Where is the Windows fanboy?

Sun, 07/24/2011 - 05:00 | 1486650 FreeMartinArmstrong
FreeMartinArmstrong's picture

only thing left to do for Steve Jobs is start Igold ...

Sun, 07/24/2011 - 07:26 | 1486749 ConfederateH
ConfederateH's picture

If Apple invested only 10% of their cash hoard in gold and silver the PM market would go up another 20%.

Sun, 07/24/2011 - 07:22 | 1486743 SAME AS IT EVER WAS
SAME AS IT EVER WAS's picture

I will give apple credit on the Ipod, and showing the world how what a real phone should work like(i.e. iphone2007-2010). I loved my iphone execpt for the fact it does not play most videos on the web due to not accepting flash. Friends have showed me their new htc/motorola phones(which are awesome), and when told what they paid for these phones I said (WTF?). Yeah apple is cool, but they better keep up the pace. Of coarse if GMRC can just keep going up & up & split & up etc....with their plactic egg that has enough coffee grounds to brew one fucking measley cup of coffee, hey apple @ $400 just might be getting started.

Sun, 07/24/2011 - 08:22 | 1486816 papaswamp
papaswamp's picture

So it begs the question why apple is continually building reserves. I'm my little doom and gloom mind it seems to be they are preparing for something....really disastrous....or they are going to move HQ out of the US and they know there will be a bump in the road.

Sun, 07/24/2011 - 10:12 | 1487006 Phillips Capital
Phillips Capital's picture

Agree... im starting to ask myself the same thing. what are they doing with all that cash? they are not accumulating businesses, nor are they issuing ANY dividend. it blows my mind! they could definitely start issuing a dividend. i think that would be a good choice if they still want to have hoards of cash. who knows, maybe they are waiting for the right time to strike and seeing if they can buy themselves some eurozone countries. that would be quite an acquisition, eh? 

Sun, 07/24/2011 - 14:22 | 1487798 e1618978
e1618978's picture

When microsoft was ripping off their IP in the 1990s, they did not have enough of a cash horde to sue so they just had to bend over and take it.  Also, a lot of tech companies got scared after the dot com crash, which is why they tend to have a lot of cash and no debt.

Sun, 07/24/2011 - 10:35 | 1487056 flyr1710
flyr1710's picture

.....and isn't doing anything with it

Sun, 07/24/2011 - 11:39 | 1487227 no2foreclosures
no2foreclosures's picture

Where is Reggie and all the other Apple haters?!?

Apple is the last hope for the U.S. And if Steve Jobs dies due to his cancer which is totally unnecessary, it will be the end of an era.

http://www.rense.com/Steve%20Jobs.pdf

Sun, 07/24/2011 - 15:12 | 1487954 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

How long before the Feds pluck this plum errr..... apple from the tree?!  How about 24 hours after Steve Jobs meets his maker?!

 

Tuco Benedicto Pacifico Juan Maria Ramirez

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