HH Top 10 Companies With Largest Cash Reserves In The World

Many of the world’s largest corporations are piling up cash like never before. There are at least four companies having $100 billion or more in cash reserves. Their decision to hold onto hundreds of billions of dollars has been frustrating investors, who want these companies to spend more on stock buybacks and dividends. Here we take a look at the top 10 companies with the largest cash reserves.

Top 10 companies with largest cash reserves in the world

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Financial data provider FactSet has compiled a list of corporations with the largest cash reserves. These giants have been hoarding cash, waiting patiently for the right time (and valuations) to make big-ticket acquisitions. Barring one or two, each of them has also been returning cash to shareholders through stock buybacks and dividends.

While some of these companies are under immense pressure to return more cash to shareholders, they believe it’s better to spend the cash on the long-term future of the company. The current valuations appear to be high, so now might not be the right time to buy.

FactSet compiled the ranking based on the total cash and cash equivalents (such as short-term bonds) on a company’s balance sheet in the latest quarter.

10- Bristol-Myers Squibb (BMY), $32.5 billion

New York-based pharmaceutical giant has a cash reserve of $32.5 billion. It makes prescription drugs and biologics in many therapeutic areas including diabetes, cardiovascular diseases, oncology, hepatitis, and psychiatric disorders. It is currently in the process of acquiring Celgene in a $74 billion deal, one of the biggest acquisitions in the pharmaceutical industry ever.

9- Cisco (CSCO), $33.4 billion

Cisco Systems is a leading maker of networking equipment and telecom hardware. According to FactSet, Cisco is sitting on a cash pile of $33.4 billion. Cisco is also one of the largest property owners in Silicon Valley. The company pays a handsome 2.8% dividend. Cisco’s cash reserves have been declining in recent years as the company ramps up its share buyback program. It is estimated to spend $7.7 billion on buybacks this year.

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Disclaimer: This article is NOT an investment recommendation, please see our disclaimer - Get our 10 ...

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