Cash-rich Apple to earn $4 billion more on its cash by 2023 thanks to higher int...
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Cash-rich Apple to earn $4 billion more on its cash by 2023 thanks to higher interest rates
Friday, March 18, 2022 4:01 pmFriday, March 18, 20227 Comments
With its enormous cash reserves now earning next to nothing, Apple could be one of the bigger corporate beneficiaries of the Federal Reserve’s expected moves to raise short-term interest rates to about 2% by year-end.
[Berkshire Hathaway’s] earnings in 2023 could rise about 8% simply from the higher yields on its cash, Barron’s estimates.
Other big companies that should gain are cash-rich Apple and Alphabet . Apple had $203 billion of cash and equivalents at year-end 2021, and Alphabet was sitting on $139 billion.
Apple could be earning $4 billion more on its cash by 2023 and Alphabet nearly $3 billion. Higher interest income could boost Apple’s net income by about 3% next year, and Alphabet’s earnings may get a 4% lift… With Federal Reserve monetary policy makers anticipating that the benchmark federal-funds rates will be about 2% by year-end and moving toward 2.5% or higher in 2023, Berkshire stands to earn $3 billion or more on its cash in 2023.
MacDailyNews Take: Cash could be looking a bit less trashy with each rate hike.
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