Business
Apple Ends ‘Net-Cash Neutral’ Policy
Back in the 2010s, Apple had a problem: it had too much cash, and more kept coming in. The company began paying dividends and buying back shares, managing a complex balance sheet that includes cash, investments, and debt.
But the pile kept growing. By 2018, Apple had $163 billion in “net cash,” or cash plus investments minus debt. It announced a plan to get to bring those in line, and get net cash close to zero through an aggressive return of cash through share buybacks and dividends.
At the end of the second quarter, Apple had $62 billion in net cash, and the company announced that it is no longer managing cash and debt together and will treat them separately. It’s essentially the end of its net-cash neutral policy.
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