So what are some of the reasons apple had gone into a negative cashflow zone to buy back shares? Just curious, as this point from earlier in the article stuck with me.
The most obvious answer is: because they can! They still had $25 billion in cash at the end of September 2022. And they just generated $111 billion in free cash flow in FY22. They are buying back AAPL share as long as they see it as the best use of their capital.
Here is a quote from CFO Luca Maestri during the Q&A of Q4 FY22 earnings:
"In terms of cash deployment, obviously, we like to look at the capital return program over the long arc of time. And we have done, since the beginning of the program we've done over $550 billion of buyback at an average repurchase price of $47. So the program has been incredibly successful.
We are still in a position where we have net cash. And we said all along, we want to get to cash-neutral at some point. Our cash generation has been very, very strong over the years, particularly last year. I think, I mentioned in the prepared remarks, we did $111 billion of free cash flow. That's up 20% year-over-year. And so we will put that capital to use for investors."
How to claim
Great post!
So what are some of the reasons apple had gone into a negative cashflow zone to buy back shares? Just curious, as this point from earlier in the article stuck with me.
Thank you so much, Yaroslav!
The most obvious answer is: because they can! They still had $25 billion in cash at the end of September 2022. And they just generated $111 billion in free cash flow in FY22. They are buying back AAPL share as long as they see it as the best use of their capital.
Here is a quote from CFO Luca Maestri during the Q&A of Q4 FY22 earnings:
"In terms of cash deployment, obviously, we like to look at the capital return program over the long arc of time. And we have done, since the beginning of the program we've done over $550 billion of buyback at an average repurchase price of $47. So the program has been incredibly successful.
We are still in a position where we have net cash. And we said all along, we want to get to cash-neutral at some point. Our cash generation has been very, very strong over the years, particularly last year. I think, I mentioned in the prepared remarks, we did $111 billion of free cash flow. That's up 20% year-over-year. And so we will put that capital to use for investors."
Makes sense, thank you for explaining!
That's what I need! Thank you!