Apple is in an enviable position from a cash perspective, to be sure, but its approach to cash and debt makes that cash pile look much larger than it actually is.
So next time you see someone comparing Apple’s cash to the GDP of small countries or other companies’ market caps, respond by comparing its debt load similarly—after all, Apple’s $75.4 billion in debt is more than double the market cap of Tesla Motors Inc.TSLA, +4.33%
Meanwhile, Apple’s bonds are not exactly looking like a good investment.
The most active bonds, the 3.850% notes due August 2046, were trading at 98 cents on the dollar, according to MarketAxess.
By comparison, IBM Corp.’s IBM, +0.62% 4.700 % notes due February 2046 were last quoted at 113 cents on the dollar, according to MarketAxess.
General Electric Corp.’sGE, +0.77% 4.500% notes due March 2044 were trading at 114 cents on the dollar, MarketAxess data showed.
