Cisco’s Cash

I’m looking at Cisco’s (CSCO) earnings report and I have to say it’s pretty impressive. The shares are up smartly this morning.
But here’s something I don’t get. Why is the company sitting on $20 billion in cash? What’s the purpose? Maybe I’m just missing something but that’s about $3.15 a share. Given all the bad money that Cisco has tossed into share repurchases, why don’t they just give shareholders a big-ass one-time dividend? Giving profits to the owners; isn’t that what business is about?

Posted by on November 9th, 2006 at 10:12 am


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