What is Apple's debt situation?

Total debt on the balance sheet as of March 2024 : $104.59 B According to Apple's latest financial reports the company's total debt is $104.59 B. A company's total debt is the sum of all current and non-current debts.

Why does Apple carry so much debt?

Financial prowess The tech giant started borrowing aggressively about a decade ago to take advantage of ultra-low interest rates . This has helped to fund its buybacks and dividends. Moreover, you'd struggle to find a more profitable enterprise than this one.

Why does Apple have no debt?

Apple carries over $100 billion of long-term debt on its balance sheet. But the tech titan is also able to produce massive amounts of free cash flow . This easily covers interest payments and funds its stock buybacks and dividends.

What is Apple's capital return program?

Apple's “Capital Return Program” is an ideologically laden name for these distributions of corporate cash to shareholders that has nothing to do with returning capital . First, you can't “return” something to a party that never gave you anything.

Who is Apple owned by?

Apple (AAPL) Ownership Overview The ownership structure of Apple (AAPL) stock is a mix of institutional, retail and individual investors. Approximately 37.74% of the company's stock is owned by Institutional Investors, 0.11% is owned by Insiders and 62.15% is owned by Public Companies and Individual Investors .

What is Apple's current financial situation?

CUPERTINO, CALIFORNIA Apple today announced financial results for its fiscal 2024 third quarter ended June 29, 2024. The Company posted quarterly revenue of $85.8 billion, up 5 percent year over year, and quarterly earnings per diluted share of $1.40, up 11 percent year over year .

How financially stable is Apple?

The company's market capitalization stands at an impressive $2.96 trillion. Despite a high price-to-earnings (P/E) ratio of 30.03, indicating a premium valuation, investor confidence remains strong . The dividend yield is modest at 0.52%, reflecting Apple's focus on reinvesting profits for growth.

How much debt has Apple got?

Apple has a total shareholder equity of $66.7B and total debt of $101.3B , which brings its debt-to-equity ratio to 151.9%. Its total assets and total liabilities are $331.6B and $264.9B respectively. Apple's EBIT is $120.6B making its interest coverage ratio 659. It has cash and short-term investments of $61.8B.

What is the debt rating of Apple?

S&P Global Ratings affirms Apple at " AA+ " (Foreign Currency LT credit rating); outlook stable. S&P Global Ratings affirmed the "AA+" Foreign Currency LT credit rating of Apple on May 19, 2023. The outlook is stable.

Apple to Raise Up to $12 Billion in Debt to Fund Capital Return Program (2024)

Apple has filed a preliminary prospectus supplement with the U.S. Securities and Exchange Commission as it prepares to issue a $10-$12 billion bond sale, reports CNBC. The debt raised will fund Apple's capital return program, including continued stock buybacks and dividend payments to shareholders, and general corporate purposes such as the repayment of debt and acquisitions.

Apple will be offering floating rates that mature in 2018 and 2019, in addition to fixed rates that mature between 2018 and 2046. Apple's proposed 30-year bond due in 2046 may yield 2.15 percentage points more than similar-maturity Treasuries, according to Bloomberg. Apple is also planning to issue seven-year green bonds, typically used for clean energy and other sustainable initiatives, the report claims.

Apple's capital return program currently runs through March 2017, as announced last year. The company has returned $153 billion in capital to investors of its $200 billion currently authorized, so the iPhone maker will almost certainly need to raise debt through this bond sale in order to continue stock buybacks and dividend payments before setting a new authorized amount as soon as April.

Apple held $215.7 billion in cash and marketable securities, partially offset by $53.2 billion in long-term debt, as of the first fiscal quarter of 2016, but a significant portion of that money is held overseas and would be subject to high U.S. taxes upon repatriation. By raising debt through bonds, Apple can pay for its U.S. operations at a much lower rate, especially given its Aa1/AA+ bond credit rating.

Update: Apple has filed a final pricing term sheet with the U.S. SEC confirming its nine-part $12 billion bond sale.

Tags: Bonds, SEC

33 comments

Top Rated Comments

dBeats

106 months ago

a desperate try to stabilize the shares in a rather money-burning action…. instead of caring about customers needs… or care about the horrible working conditions in China...

Apple is at the top of the list of the most active companies assuring worker conditions and rights. Most companies who do work in China are low profile enough that they don't even need to make a report. Why single out Apple? What about any other electronics manufacturer, consumer electronics, home appliance, clothing, children's toys, steel manufacturing, etc. The problem isn't Apple, it's China. China's elite would rather pump their egos up on the death of their own people's children then ever consider real laws and guidelines for worker safety. So seriously stop the BS. Apple is literally doing everything it can, which can not be said for some others whose products you are probably wearing or looking at or touching at this very moment.

Score: 10 Votes (Like | Disagree)

joueboy

106 months ago

I thought to payoff Kanye's debt. ROFL!

Score: 7 Votes (Like | Disagree)

tomnavratil

106 months ago

That's a good move by Apple considering its position especially with that credit rating and (hopefully) more innovation boost. Much better than bringing money back to the US with that sort of taxation.

Score: 6 Votes (Like | Disagree)

ghost187

106 months ago

What a dumb way to spend that money. If Cook is so worried about the share prices, he can hire more people to fix software bugs, put more GBs of storage and ram in all of its hardware, add a couple millimeters to substantially increase battery life of all of its hardware, and I'm sure more people will buy Apple goods and share prices will naturally increase as well. They can buy companies like Adobe and Nintendo for what they spend on buybacks yearly. I buy Apple products, but I know they are far from perfect and Android and Windows just plain suck, so I don't have much of a choice. Watching where the profits go is a bit disturbing to be honest.

Score: 5 Votes (Like | Disagree)

Bubba Satori

106 months ago

They bought shares at $140.
They bought shares at $110.
They bought shares at $95

Four observations.
1. Great example of dollar cost averaging. If the stock goes up to $200 they're geniuses.
2. Think of all the hardware and software they could have upgraded and/or fixed with all that money.
3. Never try to catch a falling knife. It looks like they're failing terribly at propping the stock price up.
4. Tim, Eddy and Jony need to be sacked.