May 02, 2017

Question: How Much Cash Does Apple Have in the Bank?

Answer (from WSJ; subscription): About $250 billion!

A truly amazing stat that had to be shared. Here’s how it has grown over time:

Questions for students:

  • Looking at the chart, what seems to be the milestone for the company that has led to Apple gushing cash?
  • Where is most of the money held? US or foreign subsidiaries?
  • Why not just return all the money back to the U.S.?
  • What countries have a GDP of about $250 billion?
  • What are Apple’s options on how they can use this stockpile?
  • What does the growth in cash tell you about Apple’s competitive position and profitability?
  • How much do investors care about this cash? Why would you care if you were an investor? When did Apple last issue a special dividend to investors?

Related articles:

  • Apple has a record $250 billion in the bank (Ars Technica)
  • Apple has over $250 billion in the bank (USA Today)

 

 

 

 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

author image More by Tim right solid arrow
Mail Icon

Subscribe to the blog

Join the more than 12,000 teachers who get the NGPF daily blog delivered to their inbox: