Apple loves to hoard cash. The Cupertino tech giant has more than $261 billion in cash, which is enough to buy Bank of America or AT&T outright, based on their current market cap of $241 billion and $236 billion, respectively.
Approximately one-fifths — or $52.6 billion — of Apple’s cash pile is in U.S. Treasury securities, according to Apple’s most recent SEC filing. If Apple was a country, it would be ranked 21st among foreign countries with Treasury securities, according to CNBC.
In short, Apple has more U.S. Treasury securities than the Netherlands ($52.2 billion), Mexico ($38.9 billion) and Australia ($37 billion).
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U.S. Treasuries essentially are loans given to the federal government. The Treasuries are considered the safest of all investments available because these debt obligations are backed by the “full faith and credit” of the government. The government can raise taxes to pay its obligations if need be.
Treasuries are also broken down by short-term, intermediate-term and long-term classes, which mature from less than a year to 30 years. Of Apple’s $52.6 billion in Treasuries, $20.1 billion were short-term bills and $32.5 billion were in long-term bonds.
Among foreign countries, Japan and China blow away the rest in how much Treasuries they have stockpiled. Japan is at the top with $1.11 trillion in May; China was not far behind in second place at $1.10 trillion.
Ireland, Brazil, Cayman Islands, Switzerland, United Kingdom, Luxembourg, Hong Kong and Taiwan rounded out the top 10 foreign holders.
Apple blew away all its Silicon Valley rivals in the amount of Treasuries it held. Amazon held only $4.8 billion, and Facebook a meager $25 million.
Photo: Apple CEO Tim Cook watches as members of the media check out the new MacBook Pro at a press event held at the company’s headquarters in Cupertino on Oct. 27, 2016. (Dan Honda/Bay Area News Group)
Tags: amazon, Apple, facebook, U.S. treasury