FREE MEMBERSHIP Includes » ABL Advisor eNews + iData Blasts | JOIN NOW ABLAdvisor Gray ABLAdvisor Blue
 
Skip Navigation LinksHome / News / Read News

Print

CFO: Companies Plan to Trim Cash Stockpiles

January 30, 2013, 07:12 AM
Filed Under: Industry News
Related: CFO Magazine

CFO reports U.S. finance executives forecast that their organizations’ cash balances will fall this quarter, the Association for Financial Professionals reports reversing a two-year trend.

For only the second  time in more than two years, the corporate-cash indicator from the Association for Financial Professionals shows more finance executives (28%) anticipate cutting their cash hoard in the first quarter than are planning to add to it (23%). It’s the first time finance professionals are forecasting lower cash reserves for a quarter since January 2011, when the AFP began conducting the study. If the forecast is correct, it would suggest companies are becoming less wary of parting with their cash.

A forecast, of course, is just a forecast. Quarter-over-quarter and yearly, corporate-cash balances are still climbing. Forty-seven percent of organizations answering the survey said they had larger year-end cash balances in 2012 (versus 27% with smaller balances) than in 2011. And from the third quarter of 2012 to the fourth quarter, 37% of respondents increased balance-sheet cash, compared with 32% that depleted their reserves.

View the entire article on CFO.com.

 







Comments From Our Members

You must be an ABL Advisor member to post comments. Login or Join Now.