Corporate cash holdings hit a record high, increasing savings and reluctance to spend
2014-01-24 20: 35: 45
Editor in charge: Catherine
(Newspaper from this newspaper) To quote a sentence from Cabaret, "The money can make the ghosts." If this sentence is correct, then it can explain why the current global economy is not growing at full speed.
At present, everyone seems to be accumulating every cent of cash, rather than opening up money bags to spend. For quite a long time, consumers have been extremely cautious and usually choose to repay their debts, while banks have tried their best to lend more loans. Now companies seem to be accumulating large amounts of cash.
According to data from Thomson Reuters, as of the end of last year, global companies held nearly $7 trillion in cash, which is almost double the value ten years ago.
The situation in Australia is similar. According to Shane Lee, stock market analyst at CIMB, as of the end of 2013, Australia’s top 200 companies had a total of US$480 billion in cash, which was much higher than the US$2003 billion in 135. However, Lee pointed out that the company's total assets and the proportion of cash to these funds are also very critical data. However, in terms of the proportion of cash holdings to total assets, the current cash holdings of companies are also quite high. In 2003, the proportion of cash to total assets was only 4.68%, and in 2013 the proportion rose to 6.45%.
Cash holdings peaked during the global financial crisis, when Australian companies raised a total of about 1000 billion yuan in the stock and bond markets. In 2010, large companies held 750 billion yuan in cash, accounting for 9.5% of total assets.
Some fund managers, such as John Abernethy of Clime Investment Management, said: "In 2006, companies held about 400 billion yuan in cash, and in 2013 they approached 650 billion yuan. However, the stock market at that time was comparable to the current situation, which indicates that corporate profits have increased. , But the profit margin has dropped, and the return on net assets has returned to the level of 1992."
On Friday morning, 200 Australian stocks opened at 5258 points, close to the level of May 2006.
Central banks of various countries must also "fight" against banks that hoard large amounts of cash, but this is after all a global problem, not limited to banks. In 2008, the world's 975 largest companies held a total of US$1.95 trillion in cash, but four years later, their cash holdings soared to US$3.2 trillion.
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