pple has a lot of cash saved up and sitting around, but yesterday it dipped into its piggy bank to buy a self-driving car company. So what else could Apple afford to buy?
To put into context just how much spare change Apple has, here are 4 companies that Apple could theoretically buy and still have cash left over.
In reality, they’d probably have to pay a premium to the market values listed here, as is typical in an acquisition. Not to mention the fact that Apple shareholders wouldn’t be very happy if they splurged on acquisitions in industries that they really have no expertise in.
For now Apple isn’t doing anything that silly. Apple’s management seem content to make smaller acquisitions and keep the cash horde intact, while returning some money to shareholders via dividends and share buybacks.
Note: Apple Cash Reserves includes: Cash & Cash Equivalents and Marketable Securities. As of 2Q19.
Data Source: Apple 10-Q SEC Filing. Yahoo finance for the company market caps. Viz Tool: Microsoft Excel.