Apple Inc. (AAPL): Net Cash Hasn’t Grown In Two Years

cashTyler Durden:¬†Perhaps the one chart that is most praised following every Apple Inc.’s (NASDAQ:AAPL) quarterly earnings report is the one showing the company’s gargantuan cash trove, and sure enough, this quarter was no exception for good reason: AAPL’s total cash and equivalents, including its short and long-term investments just rose to a record $164.5 billion, as shown below.

There is one problem with this chart: it includes the contribution of AAPL’s debt, because while pundits are quick to praise AAPL’s cash, they forget that starting in Q3 2013 AAPL also started loading up on debt, first $17 billion, and as of this quarter, the debt has now grown to $29 billion.

Why? For the simple reason that the bulk of AAPL’s cash hoard has been held offshore since 2009, and only $18.4 billion, or the least since September 2010, was on the domestic books as of the March 31 quarter (the June 30 update won’t be available until the 10-Q is filed).


Clearly, AAPL doesn’t want to pay cash taxes on its repatriated cash, so for the past year it has been issuing debt instead to fund dividends and buybacks.

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