Learning that drives better investment decisions

Cash Levels at Companies Across Asia

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 countries across Asia. The data is a bottom-up aggregate of 17,700 companies worldwide and includes 4,700 Asian companies.

Companies in Asia have always kept lots of cash

Why is this useful?

One of the most common mistakes when valuing companies is the excessive build-up of cash in forecasted years. Understanding average cash levels of companies in various countries can be used as a guide.

An even more relevant measure is cash at companies in a particular sector, within a certain country, a subject I will cover in another piece of research.

Taiwanese companies have the most cash, New Zealand and Australia companies have least

Cash levels of markets in Asia based on stage of development of market

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.