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How the Kings of Cash Rose in Previous Years!

Cash Economies

By Osei AgyemangPublished 5 years ago 2 min read

Globally, Corporate funds peaked in 2017, and have been the center of growth for more than a decade. US non-financial companies expected tax laws that will allow them to recover offshore cash without legal action, brought their total liquid assets to a record $2.1 trillion by the end of 2017. Other non-financial companies in Europe, The Middle East and Africa recorded one trillion in corporate funds for the second year in a row, although net spending on mergers and acquisitions nearly tripled in 2017 to a seven-year high of $96 billion.

Interestingly, the wealthiest one in 2018 is richer than before. In 2017, the company's top 25 cash hits were $16.3 billion in liquidity cuts, and more than $25 billion in the top 10.

In 2018, global financial experts expanded the criteria for all registered non-financial companies—including those with majority state ownership. The previous list excluded all companies with more than half a percentage of state ownership, but let me drive readers to familiarize themselves with the financial situation of state-controlled companies. This has brought significant new entrants to the regional list in Central and Eastern Europe, the Middle East and Asia.

In geography terms, US companies dominated the charts and ranked 13th, seven of which are among the top 10 in the 2018 list with Hong Kong, also included in the chart.

In the sixth annual ranking, tech giants remained ahead. Leading US technology companies alone generated $446.7 billion in cash, up 12 percent compared to the previous year (2017). Microsoft remains at the top of the subgroup for the third year in a row, up $19.7 billion from 2016, despite an increase in capital expenditure of $8.1 billion. This corresponds roughly to the 2016 level.

With $101.9 billion, Google's parent company, Alphabet, had the second largest cash reserve and collects more than $15 billion. Apple ranked third, followed by China Mobile, the largest cellular capitalization company in the world. However, Cisco is superior to Oracle.

For many other companies, their share growth is related to the acquisition plan. AT&T, who was ranked eighth, increased its cash reserves from $5.8 billion to $50.5 billion in just one year, mainly due to another path to the bond market. This increased the resources available for the planned acquisition by Time Warner in 2018; which was finally approved in June 2018 after a severe lawsuit. Gilead Sciences, on the other hand, spent $11.9 billion to acquire Kite Pharma and had a balance of $25.5 billion at the end of the year. In fact, this can be found in other M&A offers. Therefore, during the trade war between the US and China, Qualcomm announced that it had refused an offer to buy NXP for $44 billion after approval from Chinese antitrust authorities had not been obtained. In exchange, the company will spend $30 billion to buy back.

Furthermore, Central Japan Railway Company ( JR Central) also finished in 16th place. The financial need to build the Chuo Shinkansen has prompted JR Central to prepare special cash that has been provided by the company generously over the past few years. Another newbie Japanese maker is SoftBank Group, which provides cash to keep its debt ratio constant when pursuing an aggressive investment policy.

Changes to the eligibility criteria have led to several new companies that were previously excluded due to their ownership structure, including three from China: China Mobile in fourth place, China State Construction Engineering in tenth place and China Petroleum & Chemical (Sinopec) in place to -17.


About the Creator

Osei Agyemang

A passionate writer who creates exciting and innovative contents. Osei Agyemang is also a tourism fan who loves to travel around the world. He has studied Psychology and Journalism.

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    Osei AgyemangWritten by Osei Agyemang

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