Top 10 Tech Companies With Most Overseas Cash Holdings
BANGALORE: In its latest financial report, the investment firm JP Morgan wrote that U.S. multinational firms are keeping more than $2 trillion of their money abroad. It is a sensible move to stash assets in foreign countries, as otherwise companies would be taxed twice, once the money returned to U.S. soil.
The technology sector is leading in this practice, for a variety of reasons; tech companies make most of their sales abroad. And tend not to have high operating costs. Timesofindia.indiatimes.com has compiled a list of the top 10 tech companies with cash kept overseas:
Apple, $157.8 billion cash
With a market capitalization and total revenue of $178 billion, Apple is the most profitable company in the world. Most of the revenue comes from the sale of its popular software bundled hardware products- the iPhone, Ipad and Macintosh computers. Most of the manufacturing is done in-house, which increases Apple’s profit margins relative to their biggest competitors. Another source of the company’s wealth is in its Tax avoidance policies: Apple has $157.8 billion worth (89 percent of the total market value) of its assets in foreign banks, and $69.7 billion in untaxed foreign earnings. Its total revenue for the financial year 2014-2015 was $74.5 billion.
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