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The Resource for the Global Finance Profession
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AFP Corporate Cash Indicators®

 2016 Jan CCI Graph

 January 2016 Results: U.S. companies built up their cash reserves at a far more rapid pace during the last quarter of 2015, than in the previous quarter. Finance professionals are looking to deplete cash reserves during the first few months of the year, and short-term investment aggressiveness continued to show a conservative investment posture for a second consecutive quarter.

DOWNLOAD THE RESULTS

Press Release: A Troubled and Volatile Global Economy Drives U.S. Firms’ to Accumulate Cash Rapidly In 4Q15

AFP Corporate Cash Indicators  Jan 16
Oct 15
Jul 15
Apr 15
Change in Cash Holdings (Over the Past Quarter)
+16 +6 +18 +5
Change in Cash Holdings (Over the Past Year)
+15 +13 +13 +6
Expected Change in Cash Holdings
(During Current Quarter)
-1 +8 +11 -1

 2016 Jan CCI Graph

 How to read the results: 
The indicators measure recent and anticipated changes in corporate cash balances by calculating the percentage of survey respondents reporting an increase (or expected increase) in cash holdings minus the percentage reporting a decline (or expected decline). Declining indicators are indicative of increasingly confident businesses. Conversely, rising indicators suggest growing pessimism.  

Why you should care about corporate cash holdings and the AFP Corporate Cash Indicators?
The reason is simple: all other things held constant, optimistic companies are more likely to deploy their cash holdings. Confident companies use their cash to make growth-orientated expenditures (e.g., increased capital expenditures, merger & acquisitions and hiring) and to increase dividend payouts and share repurchases. Conversely, pessimistic executives are likely to retain their cash holdings

About the AFP Corporate Cash Indicators

The AFP Corporate Cash Indicators (AFP CCI), provide treasury and finance professionals, policymakers and market analysts with timely data on a determinant of economic activity: corporate cash levels. 

AFP Corporate Cash Indicators is a trademark of the Association for Financial Professionals. All AFP Corporate Cash Indicators® survey questions, data and reports are the copyrights of the Association for Financial Professionals, and all rights are reserved. For information about including the AFP CCI on your site, please contact pr@afponline.org.

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