This week Apple published a report on the results of the first quarter of 2017. In it, in particular, reported that the amount of cash of the company exceeded $258 billion, which allowed the company to take first place in the ranking of private companies with the biggest reserve of available funds. It’s more the total cost of Wal-Mart and Procter & Gamble and more foreign exchange reserves of Canada and the UK combined.
However, $250 billion of cash, Apple can mislead in estimating the cash reserves of the company and the existing in connection with this opportunity. The fact that “Apple” the Corporation holds a large part of funds outside the United States. To avoid paying tax, the company even takes the money.
As the Wall Street Journal, in the last quarter, Apple has debts of $11 billion, so the total amount now is $100 billion, This number will continue to grow: Apple increases buyback of own shares and a new investment Fund worth $1 billion will be financed with debt. Yesterday the company launched a bond program and was reported to have attracted $22 billion.
This does not mean that Apple is all bad. Its assets of $150 billion market capitalization exceeds that of most other companies.
It is important to keep in mind in assessing the financial capabilities of Apple. There is hope on a one-time tax breaks on profits abroad, which will allow American companies like Apple to return money at a rate of 10% instead of 35%.
Now trump and the Republicans are going to change the rules in the program for repatriation of U.S. foreign reserves. This may allow Apple to spend some money on the purchase, while avoiding large tax expenditures. But the confidence that the company will return the funds yet. Otherwise Apple would not have to bring another $22 billion in the United States.