Moody: Apple's Cash Reserve to Cross $170 billion by 2013

A new report by Moody’s Investor Services claims that if Apple doesn’t change its current policies regarding stock buyback and dividends it may end up with a cash reserve of $170 billion by the end of current year.

 

The Marketwatch report, which cites the original     report by Moody, indicates that Cupertino is in for a huge increase in its surplus cash up until the company either increases its $10 billion common dividend or goes ahead with stock buyback in increased amounts. Apple would end up adding over $35 billion to its reserve.

Moody’s reports revealed that the total cashpile of the leading non-financial US corporation at the end of 2012 was a whopping $1.45 trillion with the tech companies holding 556 billion which is more than one third of the total cash reserves.

Apple, Google, Microsoft, Cisco and Pfizer are the five leading tech companies holding nearly a quarter cash reserves amounting to $347 billion. Apple is at the top of the list with over $137 billion cash balance.

Last year Apple announced its plans to distribute $2.5 billion to its shareholders as dividend in each quarter, and also announced that it will allocate another $10 billion in its stock buyback policies. The total expenses of the company for the coming three years will amount to around $45 billion.

The company has also made plans to invest a total of $10 billion in 2013, including $1 million to be utilized to expand its worldwide retail stores, and $9 billion in improving the company’s infrastructure and facilities including construction of new office buildings, data centers and in buying manufacturing equipment for ensuring smooth supply of its products to the consumers. 

Despite Apple’s plan of spending $55 billion at work, the company will continue generating new cash flows enough for its assets expansion. Another $16 billion was added to the company’s cash reserves last quarter.


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