5 ms·
How big is their war chest? $9B would literally be pennies on the dollar to a company like Apple (>$1T reserves?). I doubt Intel’s is that big, but it might be
by cobbzilla 5y ago
How big is their war chest? $9B would literally be pennies on the dollar to a company like Apple (>$1T reserves?). I doubt Intel’s is that big, but it might be big enough not to worry investors too much.
- hristov 5y ago34.5 bln cash 40 bln debt.
- zeusk 5y agoApple has cash and cash equivalents of $40B in their latest quarter, far cry from $1T. The thing with market cap is, most of it is decided by the last trade price, which can be very volatile. With deep order book on index and household name like Apple, that volatility doesn't show up until a black swan event like it did in March 2020.
- windowsrookie 5y agoApple has $200B, not $20B cash on hand.
- zeusk 5y agoFrom the horse's mouth. https://www.apple.com/newsroom/pdfs/FY21_Q2_Consolidated_Financial_Statements.pdf https://www.apple.com/newsroom/pdfs/FY21_Q2_Consolidated_Fin...
- fspeech 5y agoOne could count marketable securities as cash equivalents for the purpose of discussion here. They can be readily converted to cash on the time scale that is relevant to this thread.
- zeusk 5y agoNo you can't, the ones that are considered equivalent are included in the line item for cash/cash equivalents. marketable securities are volatile and don't hold their value exactly when there is a liquidity crisis. Even including these securities, totals to about $60B quite shy of either $200B or $1T
- fspeech 5y agoThese securities are marked to market, which means you can sell them for roughly that value over a reasonable amount of time. There's also 134B of non-current marketable securities based on the statements you cited, which brings the total to around $200B. The equivalence standard you used is the accounting standard, which means you can get the exact amount in cash overnight if you so desire. It's too strict when considering what financial resources you have in making long term capital investments.
- cobbzilla 5y agoSorry for some reason Apple’s market cap number popped into my head. $9B is still small against Apple’s $200B, but fairly large against Intel’s $34B. So yeah I’d be scared.