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. ...

Already a member? log in here.

Upcoming CPE Webinars

Sep 18
In this course, Amber Setter will shine the light on different types of leadership behavior- an integral part of everyone's career.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.