AFP Corporate Cash Indicators®

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April 2017 Results:

Entering the second quarter of 2017, finance executives are less optimistic about the economy than they were in early January. Last quarter finance executives were looking to deploy cash, signaling a sense of optimism for the first time in many months. However, this quarter’s results suggest they did the reverse and accumulated cash and are planning to continue to do so through the spring.

Download the Results

AFP Corporate Cash IndicatorsApr 17Jan 17Oct 16Jul 16
Change in Cash Holdings (Over the Past Quarter)+15+16+19+8
Change in Cash Holdings (Over the Past Year)+16+19+21+14
Expected Change in Cash Holdings (During Current Quarter)+3-7+4+16

 RSCH-17-CCI-Apr-PgGraphic

Press Release:

Finance Executives Are Less Upbeat About the Economy in 2Q 17, Return to Hoarding Cash

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

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. 

About the AFP Corporate Cash Indicators

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.