Study: Uncertain Future Prompts U.S. Firms to Build Cash and Short-term Investments in Q2 2021
While treasury and finance professionals are currently in a stronger financial position compared to last year, they continue to be cautious with their cash holdings due to future uncertainty.
- While treasury and finance professionals are currently in a stronger financial position compared to last year, they continue to be cautious with their cash holdings due to future uncertainty.
- Fifty-nine percent of organizations held greater cash and short-term investment balances at the end of Q2 2021 than they had one year earlier, while 14% held smaller cash balances relative to a year ago.
- The difference of 45 is 16 points higher than the July 2020 reading, indicating a faster pace of cash accumulation than a year ago.
- Organizations planning to increase their cash balance during Q3 are doing so primarily due to improved business performance.