Apple’s cash reserves swell to $250bn, greater than the combined foreign reserves of the British government and Bank of England

Apple’s cash reserves swell to $250bn, greater than the combined foreign reserves of the British government and Bank of England

Apple

Apple’s cash pile has swelled to over $250bn (£194bn), a sum greater than the combined foreign reserves of the British government and Bank of England.

The technology giant will reveal on Tuesday that its reserves have been boosted once again after making a quarterly profit of over $10bn.

Its holdings have more than doubled in the last five years as Apple stashes increasing amounts offshore, in anticipation of a tax holiday that will let it repatriate cash.

In January, Apple said reserves had increased by $8.5bn to $246bn. More than $230bn was parked at offshore subsidiaries, the biggest overseas holdings of any non-financial company.

The technology giant will reveal on Tuesday that its reserves have been boosted once again after making a quarterly profit of over $10bn.

Its holdings have more than doubled in the last five years as Apple stashes increasing amounts offshore, in anticipation of a tax holiday that will let it repatriate cash.

In January, Apple said reserves had increased by $8.5bn to $246bn. More than $230bn was parked at offshore subsidiaries, the biggest overseas holdings of any non-financial company

This is more than the $163.4bn in international reserves held by the British government and Bank of England, and enough to buy any company on the FTSE 100.

While Apple was once known for ploughing its profits back into developing new technologies, it now generates more cash than it would realistically want to spend. Its chief executive Tim Cook has returned over $200bn to shareholders since 2012 but most of its overseas profits have remained offshore due to the tax burden that bringing it back to the US would create.

Apple is anxiously awaiting a tax cut from the Trump administration that would see it repatriate its holdings. “I think it would be good for the country and good for Apple,” Cook said in January.

Apple’s expanding overseas cash pile has drawn scrutiny from the European Commission, which says the company should be paying corporation tax on profits from Europe, Africa, the Middle East and India in Ireland, where it registers those sales.

Shares in Apple have risen to an all-time record on expectations that a massive return on capital would lead to a special dividend

For More: http://www.telegraph.co.uk/technology/2017/05/01/apples-cash-reserves-swell-250bn/?WT.mc_id=tmgoff_fb_tmgmoney

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