Can Apple Afford Its $108 Billion in Long-Term Debt?
Can Apple Afford Its $108 Billion in Long-Term Debt?
Even the most financially savvy businesses can find more ways to strategically raise capital. In the past 10 years, shares of Apple (NASDAQ: AAPL) have crushed the Nasdaq Composite index. Strong financial results have propelled this business to a $2.6 trillion market capitalization.
Sizing up the debt burden
Investors can look at some key metrics to determine whether a business is able to handle its debt burden. When scrutinizing Apple in this regard, it's clear that the company has absolutely no problem at all with its borrowings.
Financial prowess
Just because a company has some debt on the books, it doesn't necessarily mean it's a risky stock to own. In fact, in this case, it points to Apple's financial prowess. The tech giant started borrowing aggressively about a decade ago to take advantage of ultra-low interest rates. This has helped to fund its buybacks and dividends.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.