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The Resource for the Global Finance Profession

AFP Corporate Cash Indicators®

2015 AFP CCI Job Graphic

January 2015 Results: 2015 appears to be a good year for the job market. Optimistic about their prospects in 2015, U.S. businesses are expecting to shed cash holdings during the first quarter. Further, cash balance gains versus both a quarter and year ago were smaller than typically seen at the start of a new year. Companies are deploying this cash in a number of ways, including increasing capital expenditures, merger & acquisition activity and hiring.

The January 2015 AFP Corporate Cash Indicators®:

  Jan 15 Oct 14 Jan 14
Change in cash holdings over the past quarter +13 +6 +19
Change in cash holdings over the past year +9 -4 +20
Expected change in cash holdings during current quarter -14 -3 -1

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 apt to sit on their cash holdings as they fret about their companies' future prospects.

About the AFP Corporate Cash Indicators®

The AFP Corporate Cash Indicators® (AFP CCI®), underwritten by Capital One Bank, 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 the AFP CCI® on your site, please contact pr@afponline.org.

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