Companies with Cash to Spare

The latest PricewaterhouseCoopers Trendsetter Barometer survey, released today, indicates that nearly one in five (18%) of the country's fastest growing companies have surplus cash to invest.

For the survey, CEOs from 421 product and service companies were interviewed over the last five years. The surveyed companies range in size from $1 million to $50 million in revenue.

Survey results show that companies with cash to spare are utilizing three different investment strategies.

  • Some companies are acquiring securities in certain publicly-traded companies. These investments are held at the corporate level and are not part of 401(k) plans. Interestingly, only 44 percent of companies in this Trendsetter group have 401(k) plans for their employees.
  • Some companies are making investments in other companies that complement their own business. Slightly more than half (58%) of these investments are made with a financial return as the objective. The rest of the investments are made for strategic reasons.
  • Some companies are funding start-ups. These investments are designed as incubation programs, where the start-up is housed in a designated facility, exposed to a strict regimen of services designed to accelerate growth. This strategy is typically chosen as a means of bringing externally-developed technologies, processes, products, or services to the investing company.

You may like these other stories...

For the first time since 2006, more than 50 percent of CFOs believe the US economy will show signs of improvement over a six-month span rather than remain the same or worsen, according to a new study from Chicago-based...
By Jason Bramwell, Staff Writer CPAs in New Jersey, New York, and Pennsylvania believe economic conditions in the United States will likely be the same one year from now, and while they predict higher business revenues...
By Jason Bramwell Managers in accounting, finance, and IT are cautiously optimistic about their hiring plans for the fourth quarter of 2013, according to a new hiring outlook survey from staffing firm Brilliant. ...

Upcoming CPE Webinars

Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.
Aug 20
In this session we'll review best practices for how to generate interest in your firm’s services.
Aug 21
Meet budgets and client expectations using project management skills geared toward the unique challenges faced by CPAs. Kristen Rampe will share how knowing the keys to structuring and executing a successful project can make the difference between success and repeated failures.