Where does AAPL ( Apple Inc. ) keep close to $100 Billion in Cash and what to do with it?

Where does AAPL ( Apple Inc.) keep close to $100 Billion in Cash and what to do with that pile of cash ?


I was looking over the recent Apple Earnings report and was curious where they park that mountain of almost $100Billion in Cash

I did a pie chart to show the amounts and percentages.

As expected very little of the $97,521,000,000 is actually in cash only $3.9B or 4.06%

The majority of Apple’s money is parked in US Treasury , US Agency & Corporate Securities which accounts for 75.47%

Below is the the breakdown of where the money is in ascending order:

such as , Asset-backed securities, mutual funds, commercial paper, money market funds, certificates of deposits and time deposits, Cash, municipal securities, non-U.S. government securities, US Treasury Securities, US Agency securities and Corporate securities.

Another question that some may wonder is what does apple (AAPL ) make in interest on that massive pile of cash?

Surprisingly not much approx. 1.02% in 1st 2012 Q compared to .75% in the 2011 Q



Even at just 1% per Quarter works out to almost $4B per year or $10Million+ per day ( This is just my estimate but will continue to grow since they keep adding so much cash per Quarter and the compounding effect can get ridiculous)


You can read the full Apple earnings report for Dec. 31st , 2011 here:  http://sg22.ly/ybzE3Q 


I tweeted today what can $AAPL do for fun with close to $100B in cash :

Outside from the boring but smart suggestions of :

  1. buy out or take positions in #icloud , social networking, or movie content companies to help upcoming #iTV AppleTV launch
  2. declare a special dividend ( they have over $100 per share of cash on hand) WOW!
  3. share repurchase
  4. continue spending on R&D
  5. reduce the cost of iphones , ipads, Macs, ipods.
but as we’ve seen from Quarter to Quarter that Cash pile continues to grow so fast:
So here’s a few fun things I posted that AAPL could spend the $100B cash on (see or post more on twitter at hashtag #applecash :
  1. $AAPL could give every person in the U.S. $319.58 
  2. could buy 2,500 Gulfstreams V that Mark Cuban ( @mcuban ) bought or it can buy 40 @mcuban ‘s 
  3. could go to an apple store and buy 500 million + new#iphone4s with a $VZ contract 
  4. could pay the $100B ransom by Dr.Evil (#austinpowers) if he ever held the world hostage http://sg22.ly/yI4fYs
  5. could buy out $NFLX & $RIMM & still get back $80Billion+ in change back
  6.  by @colindean :  With $100B, Apple could put an iPod Touch in the hands of every person in the US and Pakistan, the 3rd and 6th largest countries
  7. RT @colindean: With $100B, Apple could put an AppleTV on every TV in China. #applecash
  8. RT @colindean: Apple could pay off 75% of American farm mortgage debt with its $100B #applecash
  9.  by @mmassassin : take wife to the dollar store and tell her go crazy girl 
  10. buy the entire Facebook iPO ( $FBOOK ) which is expected to be worth $100B ( on serious note they should take a part ownership stake.
Another interesting fact:
What is AAPL market cap?
As of Jan 27, 2012 it was over $414Billion and the only other company that comes close is $XOM ( Exxon Mobil) They have been neck and neck for 1st and 2nd top company as per Market Capitalization:
But look at the list below (its in millions) but there are 49 stocks that are valued over $97Billion so
Apple has more cash on hand then the market cap of all but 48 stocks ( Just incredible ).
This is why we will continue to see so many articles about Apple’s huge amount on cash hand and what they will do with it. As we head into the next Quarter Apple’s cash will easily grow well over $100 Billion and after such a major milestone the company will have even more pressure to decide what to do with all that money.
No.	Ticker	Company	Market Cap
1	XOM	Exxon Mobil Corporation	$415,906.82
2	AAPL	Apple Inc.	$414,461.86
3	PTR	PetroChina Co. Ltd.	$269,864.46
4	MSFT	Microsoft Corporation	$247,527.72
5	RDS-B	Royal Dutch Shell plc	$230,287.19
6	IBM	International Business Machines Corp.	$225,092.84
7	BHP	BHP Billiton Ltd.	$214,068.38
8	CVX	Chevron Corporation	$212,271.85
9	WMT	Wal-Mart Stores Inc.	$208,803.96
10	PBR	Petroleo Brasileiro	$203,559.42
11	GE	General Electric Company	$201,328.66
12	CHL	China Mobile Limited	$200,439.49
13	BRK-A	Berkshire Hathaway Inc.	$197,092.50
14	PBR-A	Petroleo Brasileiro	$187,580.40
15	GOOG	Google Inc.	$184,001.90
16	BBL	BHP Billiton plc	$181,886.27
17	JNJ	Johnson & Johnson	$179,416.84
18	PG	Procter & Gamble Co.	$178,285.54
19	T	AT&T, Inc.	$174,520.70
20	PFE	Pfizer Inc.	$166,269.15
21	KO	The Coca-Cola Company	$154,466.36
22	WFC	Wells Fargo & Company	$153,196.04
23	HBC	HSBC Holdings plc	$151,554.43
24	VOD	Vodafone Group plc	$143,920.56
25	JPM	JPMorgan Chase & Co.	$142,453.38
26	ORCL	Oracle Corporation	$142,181.02
27	BP	BP plc	$141,596.77
28	INTC	Intel Corporation	$136,211.00
29	PM	Philip Morris International, Inc.	$132,670.53
30	TM	Toyota Motor Corporation	$128,593.15
31	VALE	Vale S.A.	$126,649.60
32	FMX	Fomento Econ	$125,631.31
33	NVS	Novartis AG	$125,470.08
34	TOT	Total SA	$124,813.93
35	MRK	Merck & Co. Inc.	$118,198.33
36	ABV	Companhia de Bebidas Das Americas (AMBEV)	$115,701.56
37	GSK	GlaxoSmithKline plc	$114,739.44
38	RIO	Rio Tinto plc	$113,144.93
39	CSCO	Cisco Systems, Inc.	$106,603.30
40	VZ	Verizon Communications Inc.	$105,712.90
41	PEP	Pepsico, Inc.	$103,998.03
42	SLB	Schlumberger Limited	$101,975.04
43	EC	Ecopetrol SA	$101,646.93
44	MCD	McDonald's Corp.	$101,482.96
45	SNP	China Petroleum & Chemical Corp.	$101,269.11
46	BUD	Anheuser-Busch InBev	$99,399.67
47	SPY	SPDR S&P 500	$99,190.91
48	SNY	Sanofi	$99,144.61
49	QCOM	QUALCOMM Incorporated	$97,564.78


Hope you found this helpful or if you find any errors ,



Posted in Apple Stock Chart - Nasdaq:AAPL, Commentary