is this a conundrum for apple

[chrislognshot]

how is that apple has a free cash flow of 100 billon dollars a conundrum

[sniper97]

Probably better in the money and finance section. Growth rate probably matters most. How to effectively use the cash, buy back stock, buy up other tech businesses. They are rolling in cash.

[maggot]

Good question. My guess is that is costs money to manage money. It costs money to spend money. Adding the headcount to make sure wise decisions are being made with the cash eats into FUTURE profits.

[Tarsun2]

im not good with $ but i thought businesses leverage debt and keep their "$" in assets, not liquidity. infact, keeping $ liquid loses $ at the rate of inflation and nets no real ROI. instead of keeping $ in a bank, they spend it on things that will/should make them $ in return. something like that. so actual paper money does little for a business. at least, that's my take on it... i could be completely wrong.

[ford]

Lots of cash = big investors who do nothing wanting more of your cash.

I wonder how much more cash they'd need to have on hand to just pay everyone on interest and just stop making products.

[latches109]

consistent free cash flow = good investment for us. Stable company that can sustain downturns. Cash on hand would also include liquid assets, apple struggles with having too much cash on hand, and I wonder why they do not increase the dividend. Would be nice to have a 3% dividend from them.

[chrislognshot]

Lots of cash = big investors who do nothing wanting more of your cash.

I wonder how much more cash they'd need to have on hand to just pay everyone on interest and just stop making products.

if company just sits on cash does nothing with it. share holders will not be happy. since not reinvest the cash into something. share holds and banks or other investors want to see something be done with that much cash's. if do not do anything with it. looks like the company not want to expand or will to work on new stuff. it becomes stale cash. and company looks stale or not will to make new stuff or expand company. yes you nest egg to fall back on. but do not need what they have in free cash flow.