Apple is the word’s most valuable tech company with a new cash sum of $194 billion.That simply means that if you total up its cash with long term marketable securities and short-term marketable securities, this totals up to $194 billion.
Apple is richer than any other company that heard of, its too rich that it can accumulate $160 billion in long-term securities, and still has enough cash to fund its operations around the world.
The tech company is growing its debt pool, though it has been arranging the cash in various chambers,its long-term debt increased from $28.99 billion at the end of September, to over $40 billion today.
You may ask your self why a wealthy company like apple hire debt and yet it has such a big amount of wealth. Apple’s financial wealth is kept in foreign countries, however, it utilizes internal funds to help fuel share purchases and etc. It can manage to borrow money in USA at a low interest rate, the geographical area makes this type of activity substancially profitable in order to avoid returning foreign cash which would become a costly tax penalty.
The tech giant informed its investors that it will increase its Capital Return Program ( CRP ) to over 50 percent which is $200 billion.
Apple uses dividends and share buybacks to return cash to its shareholders.