Samsung's Sitting on a Post-Debt Mountain of Cash Worth $28.5 Billion
Many working stiffs find themselves with too much month at the end of the money and staring at a pile of debt, but how nice would it be to have that work in reverse? If you really want to know the answer to that question, just ask Samsung, which is generating more money than it can spend each month. Of course, that's what a business is supposed to do -- make a profit and all that jazz -- only most don't find themselves sitting on 31.2 trillion won, or $28.5 billion, after debt.
Following a first quarter that saw a 42 percent jump in net profit, Samsung now says its cash and equivalents grew to almost $40 billion, which has tripled in size over the last year, The Wall Street Journal reports. After factoring in debt, Samsung is left with the above mentioned pile of cash, and growing.
What will Samsung do with all that money? Some expect the South Korean handset maker to acquire other companies, though Samsung wants to be smart about how it does this. The company told WSJ that it plans to prioritize investments into facilities, R&D, and marketing, all with the goal of making Samsung more competitive. Higher dividend payouts are likely to happen too, though Samsung kept tight lipped about specific plans.
How does all this compare to Apple? The Cupertino outfit ended its March quarter with $145 billion after debt.
Following a first quarter that saw a 42 percent jump in net profit, Samsung now says its cash and equivalents grew to almost $40 billion, which has tripled in size over the last year, The Wall Street Journal reports. After factoring in debt, Samsung is left with the above mentioned pile of cash, and growing.
What will Samsung do with all that money? Some expect the South Korean handset maker to acquire other companies, though Samsung wants to be smart about how it does this. The company told WSJ that it plans to prioritize investments into facilities, R&D, and marketing, all with the goal of making Samsung more competitive. Higher dividend payouts are likely to happen too, though Samsung kept tight lipped about specific plans.
How does all this compare to Apple? The Cupertino outfit ended its March quarter with $145 billion after debt.
