U.S. Companies Stashing More Money
Corporate America has dramatically increased its cash piles over the past few years, stashing more and more Benjamins every year since 2007. In 2012, U.S. non-financial companies filled their coffers with an additional $130 billion, taking their total cash to a record $1.45 trillion as the economy has stagnated and the labor market has moved sideways. At the same time, a prohibitive corporate tax scheme coupled with emerging market growth have pushed U.S. firms to keep 58% of their cash, or $840 billion, overseas.
Much has been said about Apple’s ever-expanding cash pile, which grew to $137 billion by the end of last year and currently makes up 9.5% of the total U.S. pie, but the iPhone maker is not alone. U.S. firms, particularly in the technology, healthcare/pharma, and automotive sector have continued stashing cash on the back of tight cost controls, modest economic growth domestically, and a solid performance abroad, according to Moody’s.
Source: Forbes. Read full article. (link)
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