Corporate America Is Flush With Record $2.4 Trillion in Cash
Corporate America has a mound of money that begs the question: Where will it go? Non-financial companies’ liquid assets, which include hard currency, foreign deposits, money-market and mutual-fund shares, reached a record $2.4 trillion in the third quarter, Federal Reserve data showed Thursday. Flush with cash, businesses now also stand to gain from a reduction in the corporate-tax rate to 20 percent, if a tax-overhaul plan in Congress gets signed into law. They could use the money toward investment, hiring, acquisitions, share buybacks and dividends, or just hoard it.
— With assistance by Sophie Caronello