How and when will US corporates spend their cash?

US listed companies have built up record cash balances during the pandemic so far. An ongoing earnings recovery may encourage them to put some of these precautionary savings to use through M&A, capex and increased shareholder returns.

What you will learn from this report:

  • S&P 500 ex financials cash balances hit a record high in 2020, at almost 13% of total assets.
  • Healthier companies are already beginning to spend. M&A activity has picked up sharply and we see scope for a relatively robust capex recovery this year.
  • Share buybacks should also recover, but purchases are likely to be relatively modest given heightened leverage and elevated valuations

Topics: United States, Equities, Strategy, US economy, North America, Investment

How and when will US corporates spend their cash