Moody’s Investors Service recently revealed that Apple Inc., the most valuable business on the planet, collected $1.24 trillion in cash in 2011. This figure sets Apple ahead of most U.S. companies as concerns of a recession and credit crisis slowly begin to disperse.
Moody’s analysts added that though revenue and cash flow have been increasing dramatically, the national figure remained unaffected, for the most part, at $1.15 trillion, excluding Apple. A report explained that all corporations graded A3 or higher hold 54%, or $594.3 billion.
“Treasurers have distinct memories of capital markets closing very quickly, and I think companies in general are more focused on controlling their fate from a funding standpoint and part of that means being able to internally fund your investment needs,” Moody’s Richard Lane said. However, “there’s a large and growing use of the cash that these companies generated over the last handful of years.”
He also said: “Companies have availed themselves of the low interest rates this year or last year to either refinance debt or bring debt into their capital structure for the first time. Taken together with the economic environment modest as it was, even with increasing levels of cash outlays for research and development, capex, dividends, buybacks, and acquisitions, is still resulted in companies growing aggregate levels of cash.”
Lane explained that the figures excluded Apple, Qualcomm Inc., Cupertino and EMC Corp. in order to keep the net results accurate.
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