Seeking Alpha

Despite a revenue base that dwarfs Apple's (AAPL) ($2.16T vs. $63.5B for FY'10), the U.S....

Despite a revenue base that dwarfs Apple's (AAPL) ($2.16T vs. $63.5B for FY'10), the U.S. government currently has less cash on hand than the world's largest tech firm. The Treasury said yesterday its "Total Operating Balance" is $73.8B; Apple's current cash reserves are $75.9B, as of its recent quarterly report.
Comments (14)
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Maybe Steve will buy the Capitol and evict the Government and turn the Rotunda into a huge Apple Store. It would certainly be more productive.
    29 Jul 2011, 05:15 AM Reply Like
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Well, a company/organization having much better management will usually produce such a result.
    29 Jul 2011, 05:50 AM Reply Like
  • Hypnos7
    , contributor
    Comments (141) | Send Message
     
    That's the way it's supposed to be. If the US gov't had a surplus people would be screaming that taxes were too high. In fact, that's what happened after Clinton left office.

     

    The question is why aren't Apple shareholders screaming for a dividend.
    29 Jul 2011, 05:54 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    "The question is why aren't Apple shareholders screaming for a dividend."
    Simple, because the stock has risen from $70 to $350 per share over the last four years and there is the prospect for further increase.
    29 Jul 2011, 06:02 AM Reply Like
  • Hypnos7
    , contributor
    Comments (141) | Send Message
     
    They aren't BRK. The fact that they still have the cash means they haven't reinvested it. For acquisitions they could easily borrow whatever amount they need, given their guidance.

     

    A more likely explanation is that they would have to repatriate a lot of the cash, and thus pay taxes on it. Another is that Jobs wants to maintain the image of AAPL as young and dynamic, even though their market cap is 50% greater than MSFT.
    29 Jul 2011, 06:13 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    BRK is the one which should be paying a dividend. It is a bloated mature conglomerate.
    29 Jul 2011, 06:48 AM Reply Like
  • Skippy09
    , contributor
    Comments (1439) | Send Message
     
    Maybe because the smart AAPL shareholders realize that the company has been doing just fine spending it's money as it sees fit so far.
    31 Jul 2011, 09:46 PM Reply Like
  • Advill
    , contributor
    Comments (2182) | Send Message
     
    What you do when .......... you (Steve Jobs) receive a call of POTUS asking you to lend "some" money?
    29 Jul 2011, 11:32 AM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    US should tax Apple.

     

    www.ips-dc.org/article...
    29 Jul 2011, 11:38 AM Reply Like
  • Advill
    , contributor
    Comments (2182) | Send Message
     
    Hold your horses!!, a couple of points explain why Apple is getting only 14% profit in U.S....and why is fare enough!

     

    1. Price arbitration: If you buy a IP4 in Germany or France or Spain you paid a nice €699, if in UK you pay SP 699, when you convert that into US dollars see that Apple is selling a IP4 in Europe for something between $ 1,015 and 1,125 per unit...same story for Japan and others, in US is only $ 699 so they are getting almost 100% of price tag pure and simple profit in pricing differentials....of course same applies to Mac´s, Ipod´s, Ipad´s and Itunes sales.

     

    2. They are selling over 50% of production out of US with no sales effect in tax calculation because they already are paying taxes in the different countries before repatriation, so when they declare and compensate according the tax treaties US has with different countries in the world.

     

    3. Apple is paying more than they should just for being in California, being in Delaware instead of Cupertino and they save the California "all world tax" plus many other high taxes of their employes and suppliers who could save a bunch living somewhere else in US....you move Apple from California and this state declares bankruptcy
    29 Jul 2011, 12:00 PM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    Come on Advill, pay attention, the linked article points out that they aren't paying taxes on revenue earned in the US. And really, your (3)? Why doesn't Apple leave Cali then? Doesn't make much sense.
    29 Jul 2011, 12:06 PM Reply Like
  • 7footMoose
    , contributor
    Comments (2266) | Send Message
     
    Close the loop hole then if they do continue to do it it becomes a problem. As long as there are such loopholes businesses will avail themselves of them and should not be criticized for doing so. The problem here is not Apple or GE it is the ignorance, laziness and self-interest of the Congress in assembling these laws.
    29 Jul 2011, 12:29 PM Reply Like
  • kmi
    , contributor
    Comments (3984) | Send Message
     
    I agree 7foot. It is legal right now.
    29 Jul 2011, 12:35 PM Reply Like
  • Advill
    , contributor
    Comments (2182) | Send Message
     
    Is a good question to Mr. Jobs, i think he loves Calif. and Cupertino where he started........fortuna... for California, he is the way he is...on the other hand saying " they are not paying taxes on revenue"....as far as I know you pay taxes in profits in a company so big as this one I don´t think the IRS is being kind with them.

     

    Rgds
    29 Jul 2011, 02:34 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|