In one sense, answering the question "How much money does Apple have?" is easy.
During its Q2 earnings conference call Monday, Apple Inc. (Nasdaq: AAPL) reported that it now has $193.5 billion in cash and cash equivalents on its balance sheet.
That's a big number. What does it really mean?
For one thing, it means the AAPL profit machine rakes in an incredible amount of money every hour of every day.
In the March quarter, Apple earned $13.56 billion in net income. That works out to $150.77 million of profit every single day. Or $6.282 million per hour. (If you think that's something, Apple pulled an average profit of $8.3 million per hour in its record-breaking December quarter.)
That's why Apple's cash pile has grown so large. As recently as the end of Q2 of 2012 - exactly three years ago - Apple had $110 billion in cash. That's an increase of $83.5 billion.
That figure is higher than the cash holdings of any other company save one - Microsoft Corp. (Nasdaq: MSFT), which has $107.4 billion. Next on the list is Google Inc. (Nasdaq: GOOG, GOOGL), which has $67 billion - well below Apple's three-year increase.
And the swelling of Apple's cash reserves has come despite a good faith effort to spend it...
Research and development spending has more than doubled over the past three years. And the company has given billions back to shareholders via Apple stock buybacks and Apple dividends. Apple now pays out more than any other company in dividends, $12.1 billion per year.
But let's get back to the question of "How much money does Apple have?" The figure of $193.5 billion is hard for just about anyone to wrap their head around.
Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter
Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…
About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.