Last month, Apple reported $179 billion cash-on-hand in what arguably was one of the most impressive 4th quarters in recent memory. Not to be undone by their Q4 results, Apple’s 2015 fiscal quarter continues their impressive streak.
If Apple were a country in Europe, they’d have the 13th largest GDP (as of 2013) among European Union member states. With the recent developments in Greece, my bet’s on a revision to these rankings soon. In fact, Apple’s cash-on-hand even exceeds the total cost of the Apollo program of $131.4 billion, adjusted for inflation!
Hoarding cash is nothing new, and corporations have been sitting on idle cash for quite some time. However, the economy (US specifically) has picked up steam, and CFOs and Treasurers should be less concerned about unexpected swings in the economy, and more concerned about their cash earning basically nothing with the bank.
Now, if Apple’s true intentions are to pay for the next space program to Mars, then perhaps they would be interested in earning significantly better yield on their cash than effectively 0%.
With a Dynamic Discounting platform, companies like Apple can provide accelerated cash flow to their extended supply chain while also collaborating automatically with their suppliers. Companies around the world are realizing the benefits of putting their cash to work funding their supply chain and earning significant yield in return. By optimizing and rationalizing pay terms, and incorporating dynamic discounting strategies, and supply chain finance, organizations
have options to actually earn something for their shareholders.
However, if hoarding cash gets us to Mars, then count me in and may the Apple be with you.