The obvious question is: where will the real estate investors put their excess cash?
The northern banks deposit their excess cash there rather than lend in the interbank market.
And, for the latest 12-month period, we required both positive earnings and positive excess cash flow.
An idea for accessing excess cash of foreign subsidiaries without increasing total tax costs is to prepay royalties.
FORBES: Corporations Can Prepay Royalties To Access Foreign Cash
And, if this is the case, excess cash should be distributed as dividends.
Most companies use share buybacks or pay special dividends on their common stock to return excess cash to shareholders.
He adds that for the last few years, the company has been able to redeploy excess cash into the business.
In other words, while Cytyc is generating plenty of excess cash, TriPath is consuming more cash than it is producing.
Managers Don Yacktman and son Stephen are Buffett-like value hunters, picking companies with strong managers, generating lots of excess cash.
Schwartz figures that HP can repurchase and retire 4% of its capitalization each year by the use of this excess cash flow.
FORBES: Buy HP and TRV Says Legendary Money Manager Marvin Schwartz
Meanwhile, they lost sight of improving balance sheets and excess cash flow, a first for this industry in its 35-year jet history.
The Federal Reserve can nip this thing fairly quickly by selling more bonds from its portfolio, thereby removing excess cash from our banking system.
Net cash is a traditional measure of excess cash and is calculated by totaling cash, marketable securities and short-term investments, and subtracting current liabilities.
We further narrowed the screen by excluding heavily leveraged firms and culling out companies with negative excess cash flow for their latest 12 months.
Foreign subsidiaries of U.S. multinationals generally retain their excess cash because paying a dividend to the U.S. parent would result in significant U.S. tax costs.
FORBES: Corporations Can Prepay Royalties To Access Foreign Cash
Strong demand for safe assets could produce an attractive return for firms that have excess cash to lend out, particularly if low interest rates persist.
Finally, once the initial inflation trade has run its course, traders will make their way back into names with excess cash, solid fundamentals and growth prospects.
Because the PGA Tour is a nonprofit organization that turns over its excess cash to charity, one measure of golf's success is the size of those contributions.
Jonathan Pincus, a senior country economist for the United Nations Development Program in Vietnam, says that the real estate boom is largely speculation from people with excess cash.
"You don't want to have excess cash tied up in the company that's not generating any value, " said Nick Fanandakis, chief financial officer of the manufacturing and science company.
It has a time-tested way to do this through its open market operations-sell bonds from its portfolio, which will soak up excess cash used to pay for those bonds.
It has a time-tested way to do this through its open market operations--sell bonds from its portfolio, which will soak up excess cash used to pay for those bonds.
The excess cash that once triggered a housing bubble in the U.S. is now sloshing back into China, creating an even more horrifying housing bubble in China's big cities.
If a company truly has excess cash on its balance sheet that is not needed to fund future profitable projects, then distributing it to shareholders is the right thing to do.
The basic premise of these bank disintermediaries is that they harness the networking power of the Web to match people who have excess cash with people in need of it or those who simply want to refinance credit card debt.
Just about every day we see large corporations with strong balance sheets and excess cash flow decide the best use they can make of the money is to return it to shareholders by repurchasing shares that increase the earnings per share behind all the remaining shares.
FORBES: Multi-billion Dollar Buybacks Can Spike Stock Prices
The excess cash Washington collects in Social Security taxes is immediately spent, and the fund is given a computerized IOU. In ten years or so--when Social Security payouts exceed the pay-ins from payroll taxes--Uncle Sam will either have to raise taxes or borrow money to pay off those IOUs.
Companies seeking to tap excess foreign cash for U.S. needs without incurring additional tax costs should consider having foreign subsidiaries prepay taxable royalties.
FORBES: Corporations Can Prepay Royalties To Access Foreign Cash
Georgia-Pacific deliberately began to generate cash in excess of depreciation several years ago.
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