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AFP Press Release

Corporate Cash Continues to Build in 2Q, Treasurers Report

New AFP Corporate Cash Indicators ™ to provide quarterly measure of business sentiment

WASHINGTON – July 26, 2011 – More organizations were building cash and short-term investment balances in the second quarter than in the first, according to the AFP Corporate Cash Indicators (AFP CCI), a new quarterly study that measures recent and anticipated changes in corporate cash balances, primarily in the U.S.  

Quarter-to-quarter, 40 percent of reporting organizations had greater cash balances at the end of 2Q11 than they had at the end of 1Q11.  Year-over-year, 47 percent had larger balances at the end of 2Q11 than they had at the end of the 2Q10.  Looking ahead, 36 percent expect to further build cash and short-term investment balances during 3Q11 compared to 19 percent that expect to reduce balances.  


AFP Corporate Cash Indicators™

+12     2Q11 v. 1Q11 

+25     2Q11 v. 2Q10 

+17    3Q11 expectations   

             “Increase” percentage minus “decrease” percentage 


View fact sheet (pdf) 

The AFP CCI is a new research initiative that will provide treasury and finance professionals, policymakers and market analysts with timely data on a determinant of economic activity: corporate cash. The AFP CCI is maintained by the Association for Financial Professionals (AFP), a professional society that serves corporate finance departments globally. 

“By tracking the aggregate cash holdings of a representative subset of members on a predictable schedule, we will be able to provide an early look at corporate sentiment,” said Jim Kaitz, AFP’s president and CEO. “We know from the response to the AFP Liquidity Survey that this information is widely sought by the business community. AFP is uniquely positioned to provide this resource.”  

Methodology: On the opening days of each quarter, AFP asks select members whether their short-term holdings increased or decreased in the past year and past quarter; whether investment selections for those holdings changed in the last quarter; and whether they expect cash holdings to increase or decrease in the coming quarter. For consistency, AFP will continue to ask the same questions.  AFP members have agreed to participate in this ongoing study on a long-term basis. 

AFP began collecting quarterly data in January 2011 and has now collected three data sets. The fourth set will be released October 24, 2011.  

AFP Corporate Cash Indicatorsis a trademark of the Association for Financial Professionals.  All AFP Corporate Cash Indicatorssurvey questions and reports are the copyrights of the Association for Financial Professionals, and all rights are reserved.    


ABOUT AFP® (www.afponline.org ) 

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