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Should Apple Buy Back Shares?

Tuesday, 4 Mar 2008 | 11:57 AM ET

Apple shares are down close to 40% from its high last year. As Jim Goldman discussed on The Call today, is now the time for a buyback?

Jim mentioned Apple's large cash position of $18 billion. Looking back at recent balance sheets, cash as a percent of assets has actually been trending down going from 73% in 2005 to 61% by the end of 2007. The same holds true for the past 4 quarters going from 67% to 62%. By comparison, Microsoft and IBM had 32% and 30% cash respectively in their most recent quarterly balance sheets.

Cash & ST Investments / Total Assets (%)

  • 2007 - 61%
  • 2006 - 59%
  • 2005 - 73%
  • 2004 - 69%
  • 2003 - 68%

On the debt side, Apple has had no long term debt for the past five years. Between lots of cash and no debt, a buyback would be easy.

Read Goldman's case here ....

  Price   Change %Change
IBM
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MSFT
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AAPL
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