Five Tech Stocks, $400 Billion Cash

The cash accumulation among five giant tech stocks – Apple (AAPL), Google (GOOG), Microsoft (MSFT), Oracle (ORCL) and Cisco (CSCO) – continues, with their combined positions now totaling about $400 billion.

Apple keeps most of its cash in investments classified as long-term, some $118 billion, but here’s the cash and short-term investments for the five:

AAPL Cash and ST Investments (Quarterly) Chart

AAPL Cash and ST Investments (Quarterly) data by YCharts

All but Google in this group are struggling to produce revenue growth, but the tremendous cash flow from their businesses fund increasing dividends and stock buybacks.

AAPL Payout Ratio (TTM) Chart

AAPL Payout Ratio (TTM) data by YCharts

All but Cisco would seem to have plenty of capacity for meaningful dividend increases, looking at payout ratio. Google, with no dividend, could initiate a fabulous one.

Valuation wise, the cash impact is significant. A straightforward PE ratio, based on trailing results, for the five:

AAPL PE Ratio (TTM) Chart

AAPL PE Ratio (TTM) data by YCharts

And now, PE ratio less cash; notice Cisco.

AAPL Price to Earnings Less Cash (TTM) Chart

AAPL Price to Earnings Less Cash (TTM) data by YCharts

Yes, sales are flat. But profit margins have been expanding, due to cost control. And the business is a cash machine. You can unleash financial advisor tools to learn more.

ORCL Revenue (TTM) Chart

ORCL Revenue (TTM) data by YCharts

Jeff Bailey, The Editor of YCharts, is a former reporter, editor and columnist at the Wall Street Journal and New York Times. He can be reached at editor@ycharts.com. Read the RIABiz profile of YCharts. You can also request a demonstration of YCharts Platinum.

Read more articles about: Company Analysis  cash   tech stocks   

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