AFP Corporate Cash Indicators®

RSCH-18-CCI-July-PgHdr

July 2018 Results:

AFP’s Corporate Cash Indicators® (CCI) results for the second quarter of 2018 reveal that U.S. businesses are continuing to accumulate both cash and short-term investment holdings, but at a slower rate than the previous quarter. Entering the second quarter, business leaders were anticipating they would spend their cash reserves though at a slow pace. However, their actions did not align with their plans. Findings suggest they continued to grow their cash reserves last quarter. Treasury and finance professionals are anticipating they will continue to hold onto their cash reserves in the third quarter, but at a slower rate than they have in the past. These results are based on 144 responses from senior treasury and finance professionals this quarter.  

Download the Results      View Interactive Findings

AFP Corporate Cash IndicatorsJuly 18Apr 18Jan 18Oct 17
Change in Cash Holdings (Over the Past Quarter)+5+18+15+25
Change in Cash Holdings (Over the Past Year)+16+17+23+20
Expected Change in Cash Holdings (During Current Quarter)+3-1-1+13

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Press Release:

Study: U.S. Firms Accumulated Cash in 2Q18 At A Slower Pace Than The Previous Quarter

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.