Analysis of Short-Term Financial Decision Making

Analysis of Short-Term Financial Decision Making Name University Course Instructor Date What does this statement mean to you? This statement means that as of September 30, 2023, Apple Inc. has a $162.1 bn in liquid assets, which includes cash/cash equivalents and marketable securities. The company can easily convert these liquid assets into cash to make strategic investments or meet its short-term obligations. This level of liquidity demonstrates Apple's financial strength and ability to effectively manage strategic and operational needs. Why does Apple have so much cash? How did they amass this amount? As shown earlier, Apple has managed to amass a large sum of cash through revenues, efficient cost controls, a vast market of clients, investment in services, and almost no debts. The selling of iPhones, iPads, Macs, and services or the company's core operations has recorded good fortunes as high global demand and healthy margins add to their coffers (Hannish & Collins, 2021). Also, it has compiled a good record of controlling the cost of production and supply chain management, boosting the firm's profitability. They have expanded their operations worldwide, especially in emerging markets, which has boosted their revenues hugely, making Apple firm in its positions both in the developing and the developed world. Successful and continued investment in the growing services segment, ranging from App Store, Apple Music, iCloud, and others, have added high-margin revenues besides supplementing the company's cash pile. Is hav...