11–20 of 61 posts
MacStories and Six Colors created graphs comparing the data from this quarter to past quarterly results https://www.macstories.net/news/apple-q4-2019-results-64-bil... https://sixcolors.com/post/2019/10/apple-results-64b-in-reve...
What exactly is the advantage of reaching a cash neutral position? If you are a company that can reliably do that does that mean you no longer have to grow — since your investors are primarily attracted to a reliably stable ability to generate dividends?
As the owner of a company (a shareholder) it is desirable because if your company isn't in the business of capital allocation then excess cash accumulation is reducing their ROE and your ROI. And yes, the company still has to grow. But as a company executive you are viewing existing and new business opportunities through their net present value. If you don't have business opportunities that meet the thresholds you ha…
A $4B margin is a pretty big margin...
Is it too early to tell how much the Apple Card contributes to Apple's revenue?
[1] https://www.sec.gov/Archives/edgar/data/320193/0000320193190...
> revenue between $85.5 billion and $89.5 billion A $4B margin is a pretty big margin...
Also this BS about stock buybacks and dividends to become cash neutral is stupid. They should be betting on moonshot things that will be the next iPhone instead of all of this financial engineering.
> revenue between $85.5 billion and $89.5 billion A $4B margin is a pretty big margin...
Earlier quoted context omitted.
As the owner of a company (a shareholder) it is desirable because if your company isn't in the business of capital allocation then excess cash accumulation is reducing their ROE and your ROI. And yes, the company still has to grow. But as a company executive you are viewing existing and new business opportunities through their net present value. If you don't have business opportunities that meet the thresholds you ha…
Why do you say the company has to grow?
I'm almost didn't write this because I didn't want to deal with the "why do we have to grow" responses.
If you are a single proprietorship then go nuts. Do what you want. If you take investor money you are an investment, and you are legally obligated (at top levels, via fiduciary obligations) to operate things to generate return. That's also why you have other corporate structures like B/public interest corps, mutuals, credit unions out there that don't obligate growth.
Apple has to grow because it's public Delaware C corp. Or they have to return cash so owners can invest it elsewhere. Or the owners will fire the executives, or shareholder groups might vote for takeovers that offer greater returns. I'm not defending it, but explaining it.
Earlier quoted context omitted.
As the owner of a company (a shareholder) it is desirable because if your company isn't in the business of capital allocation then excess cash accumulation is reducing their ROE and your ROI. And yes, the company still has to grow. But as a company executive you are viewing existing and new business opportunities through their net present value. If you don't have business opportunities that meet the thresholds you ha…
Why do you say the company has to grow?