Nvidia Leads Companies Minting Money as Interest Earned From Cash Surges
- High interest rates generate returns for corporations
- Companies invest in money markets, Treasury securities, CDs
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With interest rates at more than decade-highs, corporate finance chiefs are finding that money can indeed beget money.
Almost 1-in-10 non-financial companies in the S&P 500, or more than three dozen firms, earned more in interest income than they paid in debt expense during the first quarter, according to data compiled by Bloomberg based on members in the index that break out interest costs. While that number is largely unchanged from the prior-year period, the interest income reaped by those companies — a cohort that includes Alphabet Inc., Tesla Inc. and Johnson & Johnson — is up about 60%.