Well, besides sitting on it – on-shore or off-shore — corporations have five basic uses for the cash that they bring in:
- share buybacks;
- dividends;
- acquisitions;
- research and development;
- 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%.
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