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Summary on Apple

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Submitted By ericalauren
Words 293
Pages 2
Last week Apple stock dropped five percent and loss forty billion dollars. People thought that Apple were in trouble but that is a big mistake, The Company has two hundred billion in cash on its balance sheet. This makes it the first company to ever cross the two hundred billion dollar mark. Last quarter the company reported the cash flow was fifteen billion dollars.
Even though Apple had a good quarter investors are still upset iPhone sales are lower than expected. Even though they are disappointed, Apple cash flow is still rising. This time last year apple had 164.5 billion dollars. If they keep earning money at this rate, by this time next year apple will have a quarter of a trillion dollars. Even with Apple making all this money they are spending money too. The company spent four billion dollars on stock buybacks and another three billion dollars on dividends. That is only a start to the two hundred billion dollars, the company plans to return in capital to shareholders in buybacks and dividends.
Luckily the government is not making them break the company up like Microsoft. The company also has been doing more deals for example buying Beats Electronics. Almost ninety percent of apples cash is held offshore. But Apple is not the only company to do this. Google Microsoft and Cisco have also come under fire for off shore accounts. But if they move their accounts to the United States they will have a massive tax bill. The company had ten billion dollars in debt last quarter and forty seven billion dollars in long term debt overall. At some point they are going to start being pressured about their two hundred billion in cash on and off

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