AFP Corporate Cash Indicators™
U.S. companies continued to build cash and short-term
investment balances during the first quarter of 2012, but fewer
were doing so relative to the number doing the same three months
earlier. 40 percent of organizations had larger cash balances at
the end of March 2012 versus the end of December 2011 while 27
percent of organizations shed cash during the same three
months. The difference, a net index reading of +13, was down
11 points from the January 2012 survey.
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. The AFP CCI™ is created and maintained by the Association for Financial Professionals (AFP), a professional society that serves corporate finance departments globally.
Methodology: On the opening days of each quarter, AFP asks select members whether their short-term investment holdings increased or decreased in the past year and past quarter; whether investment selections for those cash holdings changed in the last quarter; and whether they expect cash holdings to increase or decrease in the coming quarter. For consistency, AFP asks the same questions each quarter. AFP members have agreed to participate in this ongoing study on a long-term basis.
AFP’s research department began collecting quarterly data in January 2011. The next AFP CCI™ report will be published in the July 23, 2012 issue of AFP EconWatch newsletter (www.AFPonline.org/econwatch).
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 publishing the CCI on your site, please contact pr@afponline.org.