Analysts expect a $200 B Q2 borrowing need assuming cash balances
of $280 B.
9 May 2013 - Median industrial US corporate cash balances
increased in absolute terms by approximately 250% since 2000, and between 60 - 80% since the end of 2007, according to a report from US ratings agency Fitch Ratings.
If you run cash balances
too tight, you risk bouncing payroll checks and impacting employee retention, or even supplier product flows.
The design of cash-balance plans, such as in the case of the Xerox Corporation, may create problems because a low interest rate is used in crediting cash balances
with interest but the same interest is not used when calculating present value of vested termination benefits.
Employees see the value in cash balances
and are apt to appreciate them more than they do the way their employers determine benefits under traditional defined benefit pension plans.
With time at a premium for senior financial officers this convenience often wins out over chasing higher-yielding money market funds or rolling 60-day commercial paper, especially for smaller cash balances
Corporations that must undertake significant research and development (R&D) in order to develop commercial products often fund these R&D efforts with significant net operating losses (NOLs) and large cash balances
The statement should reconcile beginning and ending cash and cash equivalents, which means cash balances
on the cash flow statement should relate to the amounts reported on the balance sheet.