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But surely much of that overseas cash is invested and earning enough that 3.25% interest is erased or at least mostly offset?
by ryanwaggoner 10y ago
But surely much of that overseas cash is invested and earning enough that 3.25% interest is erased or at least mostly offset?
- colefichter 10y agoDoesn't the word "cash" imply that the money is not invested? If they bought factories or something else productive, we'd usually refer to that as "capital".
- runako 10y agoIIRC the term is typically "cash and equivalents." [1] There is definitely not the expectation that Apple has $200B+ sitting in checking accounts unable to earn any interest. Treasuries and certain other government securities count as "cash" in most cases. Edit: Apple reports most of the amount bandied about as their "cash" as being in "long-term marketable securities." [2]. So it's a mix that is definitely not designed to all be instantly convertible to USD with no penalty. I'd guess most other large companies manage their cash similarly. 1 - https://en.wikipedia.org/wiki/Cash_and_cash_equivalents#Components_of_cash_equivalents https://en.wikipedia.org/wiki/Cash_and_cash_equivalents#Comp... 2 - https://www.apple.com/newsroom/pdfs/Q2FY17ConsolidatedFinancialStatements.pdf https://www.apple.com/newsroom/pdfs/Q2FY17ConsolidatedFinanc...