Nums: What do corps do with their cash?

Well, besides sitting on it – on-shore or off-shore — corporations have five basic uses for the cash that they bring in:

  1. share buybacks;
  2. dividends;
  3. acquisitions;
  4. research and development;
  5. capital expenditures

Bellow is Goldman Sachs’ estimate of the split.


Bottom line: about a 60% – 40% split between growth (acquisitions, R&D, and CapEx .… and shareholder distributions (stock buybacks & dividends).

Historically, the split was more like 75%  – 25%.

* * * * *
Follow on Twitter @KenHoma           >> Latest Posts

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s