Jakarta, Indonesia – July 26, 2022 (Investorideas.com Newswire) Apple, the giant tech corporation, has dropped 45.23% of its cash reserve in two years. TradingPlatforms.com noted the decline in a recent study.
Commenting on the report, TradingPlatforms.com’s Edith Reads said. “It is realistic to expect that Apple’s rate of share retirement will slow down as the firm’s cash balance continues to decline. This is not only due to a more streamlined financial sheet but also because AAPL stock is trading at a far higher price today. As a result, it is more expensive for Apple to buy back each share of its equity.”
Apple Is Moving Towards Achieving Net Cash Neutrality
Apple losing 45.23% of cash on hand in two years doesn’t mean its bank accounts are becoming depleted. It points to Apple becoming net cash neutral.
It was 11 years ago when then-CEO Steve Jobs resigned from his position at Apple and handed over the company to then-COO Tim Cook.
Apple issued debt for the first time in the firm’s history in 2012. By the end of 2017, the business reported the highest gross and net cash balances it had ever recorded in its financial records. Since then, Apple has struggled to remain consistent each year, recording either a rise or drop in net cash.
Is This a Concern for Investors?
If or when Apple starts to slow the pace of its share buyback initiatives, the stock could suffer. More so from worsening investor sentiment. However, consumers should consider other aspects of the investment thesis as well.
From a business fundamentals standpoint, Apple stock is doing well. It looks very promising for Apple in the near future. The company has discovered the sweet spot in consumer demand for its goods and services. The full story and statistics can be found here: Apple’s Cash Reserves Drop By Over 45.23% In Just Two Years
More Info:
This news is published on the Investorideas.com Newswire – a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.
More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com
Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp
