AFP Corporate Cash Indicators®

RSCH-18-CCI-July-PgHdr

January 2019 Results:

Going into the new year, U.S. businesses anticipate they will be using their cash in the first quarter of 2019 on capital expenditures, share buybacks, dividend and debt payments. The reading for the forward-looking indicator, measuring expectations for changes in cash holdings in the first quarter of 2019 is -5, suggesting they plan to deploy cash. During the fourth quarter of 2018, U.S. businesses continued to accumulate cash and short-term investment holdings and did so at a slightly higher pace than the previous quarter.  These results are based on 194 responses from senior treasury and finance professionals this quarter.

AFP thanks BMO for underwriting the 2019 January CCI Survey.

BMO_T2_E

Download the Results      View Interactive Findings

AFP Corporate Cash IndicatorsJan 19Oct 18July 18Apr 18
Change in Cash Holdings (Over the Past Quarter)+13+8+5+18
Change in Cash Holdings (Over the Past Year)+12+7+16+17
Expected Change in Cash Holdings (During Current Quarter)-5+7+3-1

 RSCH-19_CCI-Jan_PgHdr-748x250px  

Press Release:

Study: U.S. Firms Signal They Are Looking To Use Cash in The First Quarter of 2019

Podcast from Our Sponsor 

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.