The cash-prosperous continue to keep receiving richer.
Show A: Apple. The tech giant additional a awesome $30 billion to its hoard at the conclusion of 2016, bringing its cash pile to $246 billion and after once again topping a record of the five non-economic U.S. corporations with the most cash, in accordance to Moody’s.
Tech companies comprised the major five for the initial time in final year’s yearly investor’s report, and the same names did so once again this yr. Rounding out the major five right after Apple: Microsoft, Alphabet/Google, Cisco and Oracle, in accordance to the report Moody’s launched Wednesday.
As soon as once again, the tech industry experienced the premier cash hoard, $871 billion, making up forty seven % of the $one.eighty four trillion non-economic U.S. corporations held at the conclusion of the yr. The major five corporations accounted for $594 billion, or 32 %.
Most of the other eye-popping figures had been up at the conclusion of 2016 compared with the conclusion of 2015, which includes cash held overseas: $one.three trillion, compared with $one.two trillion. The tech sector accounts for a vast majority of that, much too: fifty two %, or $669 billion — that’s up from $630 billion at the conclusion of 2015.
“Because domestic cash is consumed by dividends and share buybacks and is applied to shell out for the vast majority of acquisitions, we count on that overseas cash balances will go on to develop, except if tax rules are improved to persuade corporations to repatriate revenue,” Moody’s mentioned in its report.
It is virtually just what Moody’s mentioned in final year’s report, but this yr Moody’s described that President Trump during his marketing campaign experienced promised a a person-time tax-repatriation level of ten % — which would be way decreased than the corporate tax level of 35 %.
“But provided the divisive political climate in Washington, a a person-off tax reduction on repatriated cash, a great deal significantly less a a lot more extensive reform of U.S. tax law, is seeking significantly unlikely this yr,” Moody’s additional.
Here’s a seem at the major five companies’ cash hoard and what percentage of that they keep overseas:
- Apple: $246 billion, 94 % held overseas (up from 93 % in 2015)
- Microsoft: $131.two billion, ninety five % overseas (up from 94 %)
- Alphabet: $86.three billion, 60 % overseas (up from fifty nine %)
- Cisco: $seventy one.eight billion, 87 % overseas (down from 94 %)
- Oracle: $fifty two.eight billion, 88 % overseas (up from 87 %)
Other tech corporations that topped the cash-prosperous record contain Gilead Sciences, Qualcomm, Facebook, Amazon, Intel, HP Organization and HP, eBay and Yahoo.
Aside from tech, the other sectors flush with cash are health care/prescription drugs, consumer merchandise and strength.
Photograph illustration from Thinkstock
Tags: Alphabet, Apple, cash hoard, Cisco, Google, Microsoft, Oracle, repatriation, Taxes