Cash Holdings

GCC Companies: High Cash Holdings and Shareholder Returns

Investors look at various parameters to understand and evaluate a company’s attractiveness. One such item in the balance sheet is the level of cash that a company holds. If the cash balance has been consistently growing, it is generally considered to be a good indicator that the company is performing well and is therefore able to accumulate cash reserves on its balance sheet. However, it is essential to determine the cause behind growth in cash flow and reason for holding...