Corporate America’s cash-hoarding ways may finally be ending.
US nonfinancial companies were sitting on $1.69 trillion at the end of 2018, according to a Moody’s Investors Service report released on Monday. While that’s an epic amount of money, it’s down by 15% from the record $1.99 trillion at the end of 2017.
“With improved access to global cash following the tax overhaul, we expect aggregate cash balances will continue on a declining path,” Richard Lane, a Moody’s senior vice president, wrote in the report.
Apple alone held $245 billion in cash at the end of 2018, down nearly 17% from the year before. Still, Apple’s cash pile is bigger than the aggregate amount of cash of every non-tech industry, according to Moody’s.
Buybacks spike 99%
So where is that cash going?
Corporate America stepped up its spending across-the-board, deploying record amounts of cash on acquisitions, which Moody’s said increased nearly 15% to $405 billion. Dividend sp