The Edge Singapore carried an article in its latest copy for the week 20 March 2017 entitled "Does your company have too much cash?".
According to the article, at least 100 of the 754 companies listed in Singapore have cash holdings more than half their market capitalisations.
Companies need to strike a balance between holding too much and too little cash. Holding more cash enables companies to weather unexpected storms better or take advantage of opportunities in the market. The downside is that the cash is not being deployed to more potentially productive uses.
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| Source: The Edge Singapore, March 20, 2017/Bloomberg |
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