|
Authored by: AlexWright on Friday, November 02 2012 @ 05:08 AM EDT |
Liabilities are more than just debt though.
That would include pension plans, stock, guarantees, the
cost of making everybody redundant, any rental agreements on
property etc.
I can't imagine why they could keep significant debt on
their books with that much cash to hand, unless they were
using it to avoid tax in some fashion.
Even if it was all bank debt, the moment a bank tried to put
pressure on them, they would just repay in full.[ Reply to This | Parent | # ]
|
|
Authored by: Tolerance on Friday, November 02 2012 @ 06:34 AM EDT |
I'd hoped to avoid discussing this. It makes peoples' eyes
glaze over. But here
goes:
Liabilities are (as you clearly know) Assets less Equity.
Even
an engineer knows that. But while all debts are
liabilities, not all
liabilities are debt.
Debt is a liability incurred when money has been
borrowed.
Apple does not borrow money. Specifically, absolutely Apple
runs a
debt-free balance sheet. It's well known that Apple
has been run debt-free
since Steve Jobs retook power back in
the nineties, so it can free up cash more
easily than its
competitors.
Just for example, can I refer you to
Seeking
Alpha of 16th. October which states:
"Of course, it doesn't hurt the company
is debt free ..."
That's not the same as having no
liabilities.
--- Grumpy old man [ Reply to This | Parent | # ]
|
|
|
|
|