acc 206 course hero what should apple do to improve its cash position and why?

by Lucius Reilly 6 min read

What is Apple’s capital-allocation strategy?

In a research note Wednesday, Evercore ISI analyst Amit Daryanani took a look at the company’s capital-allocation strategy. While most of the focus will be on the company’s supply-chain and consumer-demand issues connected with the Covid-19 pandemic, Apple’s plans for its cash pile are no small matter for long-term investors.

Will Apple shift to a zero net cash balance sheet?

Investors Might Find Out Soon. When Apple reports earnings on April 30, investors will be looking for an update on the company’s next steps in its plan to shift to a zero net cash balance sheet. In a research note Wednesday, Evercore ISI analyst Amit Daryanani took a look at the company’s capital-allocation strategy.

How has Apple used its free cash flow?

Daryanani notes that, since announcing its intention to reduce its cash balance two years ago, Apple has returned 135% of free cash flow via a combination of dividends and stock repurchases, reducing net cash by about $50 billion in the process.