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The Resource for the Global Finance Profession

AFP Corporate Cash Indicators® 

 April 2015 Results: For the third consecutive quarter, U.S. Businesses are expected to shed cash holdings though at a slower rate than last quarter. Companies are cautiously optimistic and are taking a wait-and-see approach, despite their predisposition to deploy and invest cash.

The April 2015 AFP Corporate Cash Indicators®:

   Apr 15 Jan 15 Oct 14 Apr 14
Change in cash holdings over the past quarter +5 +13 +6 +4
Change in cash holdings over the past year +6 +9 -4 +5
Expected change in cash holdings during current quarter -1 -14 -1 +12

 2015 April 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 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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