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>Apple are in the unique position to give with their war chest of cash Don’t all the big tech companies have giant cash accounts?

JKCalhoun 3y ago
If I'm googling this right Apple had perhaps $48B in cash in 2022. I don't know how others compare.
- eloisant 3y ago
  Goog = $110B MS = $100B Amazon = $64B Meta = $37B So no, Apple is not the big tech with the most cash. They do have a much higher market cap than the others but it's simply based on their brand image and speculation.
  - daniel_iversen 3y ago
    And revenue! i.e. 2022: Apple: ~$395bn Microsoft: ~$200bn Amazon: ~$500bn Meta: $116bn
    - adventured 3y ago
      Revenue is a very poor reference for the context. Amazon extracts a poor margin out of their $514 billion in sales. Over the past four quarters their operating income margin is a pathetic ~2.4%. Apple's operating income margin is ~29.4% by comparison. They have a vastly superior business. Eventually Amazon investors will tire of the terrible stock market returns that present Amazon is generating and the garbage that is retail and they'll demand the company split itself up. That will involve spinning off AWS so investors can realize max value for that (before it's too late and growth slows to a crawl in that space).
      - hammock 3y ago
        I look at FCF. Amazon -11B last year vs Apple +111B. Gives you an approximate run rate for their cash on hand
  - adventured 3y ago
    Apple's higher market cap is not based significantly on their image and speculation. It's based on their consistently enormous income generation. Apple has $114 billion in operating income over the past four quarters. Alphabet is close to $75b by comparison; Microsoft is $83b; Meta is $29b. Amazon is a joke at $12b (which is increasingly being reflected in their very mediocre stock market performance; Amazon stock has nearly contracted on an inflation adjusted basis over five years). For large corporations like Apple, Microsoft, Meta, Alphabet, etc., profit generation is overwhelmingly what matters. Apple has led the way on that for a long time now and it's reflected in their market cap.
- hammock 3y ago
  Google $115B Microsoft $105B Samsung $91B Amazon $64B
- inkyoto 3y ago
  Apple Q2 2023 report indicates USD 166 billion in cash reserves.
  - MichaelZuo 3y ago
    I believe that's including things like high liquidity investments and so on, so not quite cash.
    - inkyoto 3y ago
      I am not going to bet my life on it, but as per [0] the definition of the «[cash] reserve» is: «In financial accounting, reserve always has a credit balance and can refer to a part of shareholders' equity, a liability for estimated claims, or contra-asset for uncollectible accounts». So it refers to a credit balance, and it does not mention investments. [0] https://en.wikipedia.org/wiki/Reserve_(accounting) https://en.wikipedia.org/wiki/Reserve_(accounting)
      - hammock 3y ago
        The term "cash reserves" is not a standard accounting term or classification. "Cash reserves" is commonly used to refer to funds set aside by a company or organization for specific purposes, such as contingencies, future investments, or working capital needs. These reserves are typically considered as part of a company's cash and cash equivalents. Under GAAP, cash (and cash equivalents) includes currency on hand, deposits in bank accounts, and any highly liquid investments that have an original maturity of three months or less. Cash equivalents are short-term investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase
        inkyoto 3y ago
        That was really helpful, thank you for the detailed explanation.
      - mikeyouse 3y ago

JKCalhoun 3y ago

If I'm googling this right Apple had perhaps $48B in cash in 2022. I don't know how others compare.

eloisant 3y ago
Goog = $110B MS = $100B Amazon = $64B Meta = $37B So no, Apple is not the big tech with the most cash. They do have a much higher market cap than the others but it's simply based on their brand image and speculation.
- daniel_iversen 3y ago
  And revenue! i.e. 2022: Apple: ~$395bn Microsoft: ~$200bn Amazon: ~$500bn Meta: $116bn
  - adventured 3y ago
    Revenue is a very poor reference for the context. Amazon extracts a poor margin out of their $514 billion in sales. Over the past four quarters their operating income margin is a pathetic ~2.4%. Apple's operating income margin is ~29.4% by comparison. They have a vastly superior business. Eventually Amazon investors will tire of the terrible stock market returns that present Amazon is generating and the garbage that is retail and they'll demand the company split itself up. That will involve spinning off AWS so investors can realize max value for that (before it's too late and growth slows to a crawl in that space).
    - hammock 3y ago
      I look at FCF. Amazon -11B last year vs Apple +111B. Gives you an approximate run rate for their cash on hand
- adventured 3y ago
  Apple's higher market cap is not based significantly on their image and speculation. It's based on their consistently enormous income generation. Apple has $114 billion in operating income over the past four quarters. Alphabet is close to $75b by comparison; Microsoft is $83b; Meta is $29b. Amazon is a joke at $12b (which is increasingly being reflected in their very mediocre stock market performance; Amazon stock has nearly contracted on an inflation adjusted basis over five years). For large corporations like Apple, Microsoft, Meta, Alphabet, etc., profit generation is overwhelmingly what matters. Apple has led the way on that for a long time now and it's reflected in their market cap.
hammock 3y ago
Google $115B Microsoft $105B Samsung $91B Amazon $64B
inkyoto 3y ago
Apple Q2 2023 report indicates USD 166 billion in cash reserves.
- MichaelZuo 3y ago
  I believe that's including things like high liquidity investments and so on, so not quite cash.
  - inkyoto 3y ago
    I am not going to bet my life on it, but as per [0] the definition of the «[cash] reserve» is: «In financial accounting, reserve always has a credit balance and can refer to a part of shareholders' equity, a liability for estimated claims, or contra-asset for uncollectible accounts». So it refers to a credit balance, and it does not mention investments. [0] https://en.wikipedia.org/wiki/Reserve_(accounting) https://en.wikipedia.org/wiki/Reserve_(accounting)
    - hammock 3y ago
      The term "cash reserves" is not a standard accounting term or classification. "Cash reserves" is commonly used to refer to funds set aside by a company or organization for specific purposes, such as contingencies, future investments, or working capital needs. These reserves are typically considered as part of a company's cash and cash equivalents. Under GAAP, cash (and cash equivalents) includes currency on hand, deposits in bank accounts, and any highly liquid investments that have an original maturity of three months or less. Cash equivalents are short-term investments that are readily convertible to known amounts of cash and have original maturities of three months or less from the date of purchase
      - inkyoto 3y ago
        That was really helpful, thank you for the detailed explanation.
    - mikeyouse 3y ago