Corporate Cash Hoards Even Bigger? (Reuters)

IRS says U.S. companies have much more cash than shown in Federal Reserve data.

The U.S. Internal Revenue Service estimates that as of 2009, U.S. nonfinancial companies had $4.8 trillion in liquid assets, a figure that dwarfs the $1.7 trillion in such assets shown in the Federal Reserve’s flow of funds as of March of this year, according to Reuters. The article argues that the IRS data are more accurate before they reflect companies’ worldwide holdings, while the Fed tracks only the domestic economy. It calculates that companies are holding 11.3% of their assets in cash.

 

For the full story.

For an earlier story about the Fed’s flow of funds data, see Corporate Cash Revised Lower.

 

 

Comments

Advertisement. Closing in 15 seconds.