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FYI the Apple parent company had a massive balance sheet but issued debt against it. The subsidiaries in Europe and/or the Caribbean held that cash so as not to
by thephyber 7y ago
FYI the Apple parent company had a massive balance sheet but issued debt against it. The subsidiaries in Europe and/or the Caribbean held that cash so as not to “re-patriate” it which would incur the US tax rate.
In practical terms, they didn’t hoard much and what they did was invested in financial instruments, so it was still increasing money velocity in the economy.
- beatgammit 7y ago> invested in financial instruments Which is what most people mean when they say "cash" in the context of company financials. As long as it's reasonably liquid, I consider it "cash". Investing in the company, on the other hand, is not liquid (e.g. hiring, buying planes, etc).