Microsoft's cash reserve is shrinking

Posted on Wednesday, Apr 04 2007 @ 04:15 CEST by Thomas De Maesschalck
SeattlePI reports Microsoft's cash reserves aren't as glorious as they used to be. They are still big but they've shrunken a lot:
Of course, everything is relative, and the company won't be scrounging for change under Bill Gates' couch cushions anytime soon. But the $29 billion on hand at last count was less than half the cash and short-term investments held by Microsoft about two years ago.

It's the first time in more than five years that its cash balance has been below $30 billion.

The company's products, led by Windows and Office, are still generating large amounts of cash -- about $1 billion a month. But Microsoft has taken a series of steps to reduce its cash balance. Specifically, by Microsoft's count, the company has paid out nearly $100 billion through dividends and repurchasing its own stock in the past five years.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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