S&P 500 Firms Beef Up Their Cash Piles to Deal With ‘New Normal’
- Amazon, American Air had the largest one-year cash increases
- Rainy day funds may be used for M&A, revenue streams: Khurshid
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There’s nothing like a crisis to spur a rethink of your spending habits. Consumers have been socking away money in their savings accounts during the Covid lockdowns. It turns out that businesses have been putting money away, too.
Non-financial companies in the S&P 500 Index that reported results in April and May boosted their cash holdings by 12% from a year ago, according to data compiled by Bloomberg, which is detailed below. Amazon.com Inc., Google-parent Alphabet Inc. and American Airlines Group were among the firms showing the largest dollar increases.