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Apple’s long-term debt was $94.700B for the quarter ended June 30, 2022, which is a 10.45% decrease year-over-year.
Apple’s long-term debt has been on a steady decline in recent years. In 2022, the company’s long-term debt was $94.700B, a 10.45% decrease from the previous year. This trend can be attributed to Apple’s strong financial position and its ability to generate large amounts of cash flow.
Apple’s long-term debt in 2021 totaled $109.106B, a 10.58% increase from 2020. This is primarily due to the pandemic, which caused many businesses to take on debt in order to stay afloat. However, Apple was able to weather the storm and actually reduce its debt load during this time.
Looking back at 2020, Apple’s long-term debt stood at $98.667B, a 7.47% increase from 2019. This was before the pandemic hit, and so it is likely that the company’s debt would have increased even more if not for the pandemic.
Overall, Apple has been able to effectively manage its debt load in recent years. The company has a strong financial position and has been able to generate large amounts of cash flow, which has allowed it to reduce its debt load despite challenging economic conditions.
Does Apple have a debt problem?
No, as of July 22, 2022, Apple does not have a debt problem.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the HomePod smart speaker. Apple’s software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iWork productivity suite. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell Wozniak’s Apple I personal computer kit. The Apple I kits were computers single-handedly designed and hand-built by Wozniak and first shown to the public at the Homebrew Computer Club. Jobs brought to the venture his experience working for Atari and Xerox PARC; Wozniak brought technical expertise; while Wayne contributed $1,500 of his own money as seed capital. The original partnership agreement specified that Jobs would take over as CEO when it reached $1 million in revenue.
In January 1977, Apple formed a partnership with IBM to create a new personal computer system called “Apple II”. This was followed by a successful launch of its Macintosh computer in 1984. Macintosh sales increased rapidly due to strong demand from both business users and home users who were attracted by its graphical user interface which was much easier to use than existing text-based systems; this helped to make personal computers more accessible to a wider range of people. As of June 2018[update], more than 1.3 billion Macs have been sold worldwide since 1984.
In August 2011, Apple Inc. became the largest publicly traded corporation in the world by market capitalization. By November 2018[update], Apple had a market capitalization of $1 trillion, becoming the first U.S.-based company to be valued at over US$1 trillion. However, Microsoft regained this position in April 2019 with a US$1.073 trillion valuation.
The company employs 123,000 full-time employees and maintains 478 retail stores in seventeen countries as of 2018[update]. It operates fifty-two subsidiaries globally including forty
With all the money Apple has, you might think they’re debt-free. However, like many large companies, they actually have a lot of debt. In fact, as of 2019, Apple’s debt totaled around $107 billion!
So how does a company with so much money end up with so much debt? Well, it turns out that debt can be a useful tool for companies, allowing them to finance their operations and growth. And in Apple’s case, much of their debt is actually in the form of low-interest bonds, which helps keep their costs down.
Still, $107 billion is a lot of debt! So next time you’re admiring your new iPhone or MacBook, remember that it was financed in part by debt.
How Much Debt Does Apple Have?
Apple has a long history of being a debt-free company. In fact, it didn’t take on any debt until 2012, when it issued $17 billion in bonds to help finance its large cash return program.
Since then, Apple has been gradually increasing its debt levels. As of the end of September 2018, Apple had $106 billion in long-term debt and $20 billion in short-term debt, for a total debt load of $126 billion.
This is still a relatively small amount of debt for a company the size of Apple. To put it into perspective, Apple’s total debt is less than 10% of its market capitalization and its interest expense is less than 1% of its revenue.
Still, given the size of Apple’s cash hoard, there is no need for the company to take on any more debt. In fact, Apple could easily pay off its entire debt load with its cash reserves.
What is Apple’s Debt-to-Equity Ratio?
Apple’s debt-to-equity ratio is 0.48, which means that the company has $0.48 in long-term debt for every $1 in shareholder equity. This ratio is a measure of financial leverage, and it demonstrates how much debt Apple is using to finance its growth.
Generally speaking, a lower debt-to-equity ratio is better than a higher one, because it means that the company is financing its growth with less borrowed money. However, there is no hard and fast rule about what constitute a “good” debt-to-equity ratio, since this will vary depending on the industry and the company’s overall financial health.
How Does Apple’s Debt Compare to its Peers?
As of June 2020, Apple had $107.1 billion in long-term debt on its balance sheet. This debt consists of bonds and other types of borrowing that is due in more than one year. While this may seem like a lot of debt, it is actually relatively low compared to Apple’s peers. For example, Microsoft has $75.4 billion in long-term debt, while Amazon has $28.9 billion and Google has $16.6 billion.
Furthermore, Apple is in a very strong financial position with a large cash hoard and little debt relative to its size. Apple’s net cash hoard (cash minus debt) was $84.5 billion as of June 2020. This means that even if Apple had to pay off all of its debt tomorrow, it would still have over $80 billion in cash left over. In other words, Apple’s ability to pay off its debt is not a concern.
What is Apple’s Interest Coverage Ratio?
Apple’s interest coverage ratio is the number of times that the company’s earnings before interest and taxes (EBIT) covers its interest expenses. For example, if Apple has an EBIT of $10 billion and interest expenses of $1 billion, its interest coverage ratio would be 10. A higher coverage ratio indicates that a company can more easily make its interest payments, while a lower ratio means that it may have difficulty meeting its obligations.
In general, a ratio of 2.5 or higher is considered healthy, while a ratio below 1.5 may signal trouble. Apple’s interest coverage ratio has been consistently above 3 since 2012, meaning that the company has had no problems paying its interest expenses.
What is Apple’s Total Debt?
As of September 2018, Apple’s total debt was $103 billion. This is up from $96 billion in June 2018 and $85 billion in December 2017.
The majority of Apple’s debt is in the form of bonds. As of September 2018, Apple had $97 billion in bonds outstanding. The rest of Apple’s debt is in the form of commercial paper and other short-term borrowings.
How Much of Apple’s Debt is Short-Term?
As of June 2020, Apple had $127.8 billion in short-term debt and $61.1 billion in long-term debt, for a total debt of $188.9 billion. That same quarter, Apple generated $26.4 billion in operating cash flow and $19.9 billion in free cash flow, so it could theoretically pay off its entire debt load within seven quarters.
What is Apple’s Debt Maturity Profile?
As of September 28, 2019, Apple had $107.1 billion in short-term debt and $84.2 billion in long-term debt, for a total debt of $191.3 billion.
Apple’s short-term debt includes $23.8 billion in commercial paper and $83.3 billion in other short-term debt, such as notes payable and current portion of long-term debt. Apple’s long-term debt includes $26.9 billion in Notes due 2023 & 2025, $12.6 billion in 2028 Term Loan, and $44.7 billion in other long-term debt such as capital leases and bonds payable.
Apple has a very strong balance sheet with plenty of cash and investments to cover its debts many times over. As of September 28, 2019, Apple had $207.6 billion in cash and investments on its balance sheet, while its total debts were only $191.3 billion. This means that Apple had more than enough cash to pay off its entire debt load at the end of September 2019 if it wanted to do so.
Looking at Apple’s debt maturity profile, we can see that the company has a fairly even mix of short-term and long-term debt outstanding. As of September 28, 2019, Apple had $107.1 billion in short-term debt and $84.2 billion in long-term debt outstanding. This mix provides the company with flexibility when it comes to managing its interest payments since it can choose to refinance its debt at lower rates as they become available over time.
How Much Cash Does Apple Have?
As of September 2020, Apple had $193.8 billion in cash and marketable securities on its balance sheet. The company generated $27.7 billion in free cash flow during the most recent quarter, so it’s able to continue growing its cash hoard at a healthy clip.
What is Apple’s Net Debt?
As of Q3 2020, Apple’s net debt totaled $103.6 billion. This consists of $60.8 billion in long-term debt and $42.8 billion in short-term debt, offset by cash and investments of $159.4 billion.
Apple’s long-term debt consists of bonds that mature within five years and term loans that mature within three years. The bonds are issued at fixed or variable interest rates and have maturities ranging from two to 30 years. The term loans have a variable interest rate and are due within three years.
Apple’s short-term debt consists of commercial paper, which is issued at a variable rate and matures within nine months, and other short-term borrowings with original maturities of three months or less.
As of September 2020, Apple had $115.4 billion in debt, which is down from $137.1 billion at the end of 2019. While its debt load has decreased over the past year, it’s still one of the most indebted companies in the world.
Apple’s debt is mostly composed of long-term debt, which totaled $107.9 billion as of September 2020. The company has been aggressive in repaying its debt in recent years, and its long-term debt has declined significantly from $119.2 billion at the end of 2017.
Apple’s primary source of borrowed funds has been commercial paper, which is a type of short-term debt. As of September 2020, Apple had $17.5 billion in commercial paper outstanding.
The company also has a sizable amount of revolving credit lines, totaling $26.0 billion as of September 2020. These lines of credit can be used for general corporate purposes and are not typically used to finance specific investments or acquisitions.