Survey: Corporate Cash Balances Grow, Working Capital Performance Deteriorates

As the economy recovers, too many companies are losing their focus on capital management.

The latest figures on corporate cash holdings from REL Consulting indicate both good and bad news when it comes to companies’ management of their working capital. On the positive side, corporate cash balances have grown. In fact, cash holdings at the U.S.’ 1,000 largest public companies increased 11 percent between June 2010 and June 2011, to an eye-popping $850 billion. That compares to $767 billion a year earlier. (more…)