Watch the video with Andrew Stotz or read a summary of it below.
Over the last few weeks, we have been considering the causes of the rising cash levels at US companies. First, I looked at what academia had to say about it and then realized that the question asked was the wrong one.
Today, I’ll look into how much cash is held at companies in various regions around the world.
Companies in Asia have the highest level of cash. China and Japan both have more than 13% of cash as a percent of assets.
Cash Levels are Highest in Asia ex-Japan, 13.9%
Cash in Southern Asia, Lower, but Still 10.2%
Cash in Western Europe Low at 9.3%
Middle East & Africa Falling to Below Global Companies at 9.1%
Latin America, Relatively Low Cash and Recently Falling to 9.1%
Cash lowest in Eastern Europe at 6.1%
China’s Cash Levels Have Always Been High, 14%
Cash is High at Japanese Companies, 13.5%
Article by Dr. Andrew Stotz, Become A Better Investor