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They have over 115 Billion cash on hand.
by us0r 3y ago
They have over 115 Billion cash on hand.
- notaharvardmba 3y agoBut I bet a lot of that is in long term treasuries which, if you want to use them as legal tender, are kinda down in price right now (if you don't hold them til maturity). And if they need to take a loan to pay it, those bonds are going to be at fairly high rates. Overall, it's gonna be a stock price haircut for sure. I'm guessing at least 10-20% because of all the money they could have MADE with that money.
- DennisP 3y agoLong-term treasuries are generally not considered "cash." Short-term, sure, but t-bills are doing fine.
- ojbyrne 3y agoRandom googling finds “Cash equivalents are any short-term investment securities with maturity periods of 90 days or less.” They have $35 billion in Cash & Cash Equivalents.
- tmpX7dMeXU 3y agoYep. Accounting standards dictate that a cash equivalent should be essentially as liquid as cash from the perspective of the holder. It’s safe to lump it in here.
- swatcoder 3y agoYeah, and if that takes a $30B hit to settle past accounting issues, that’s still $30B no longer poised for an acquisition or on hand to settle some EU action next year. Losing a quarter of your cash reserves for no gain isn’t going to ruin today’s business but it sure will frustrate existing strategies for the future.
- quickthrower2 3y agoYou can acquire with shares though. They or they could raise 30Bn pretty easy.
- itsoktocry 3y ago>that’s still $30B no longer poised for an acquisition They accumulate that much cash because there are no acquisitions to be had in the current economic climate. I can't imagine a $30B+ company that Microsoft could acquire without massive regulatory scrutiny.
- sensanaty 3y agoGood! Hopefully Microsoft burns through as much of their cash paying penalties as possible and dies as a result, as they should've a decade+ ago.