Treasure chests

Corporate America is holding $1.73 trillion in cash, with the top five companies hoarding almost half a trillion between them, according to a report published by Moody’s Investor Services. The firm estimates that $1.1 trillion (or 64%) of the total is being held abroad, a 16% increase on the previous year, as companies choose to take advantage of cheap borrowing costs at home to fund their spending, rather than face the tax bill when repatriating profits. Technology firms are increasingly responsible for this stockpiling of money. Tech companies now hold $690 billion in cash between them, more than double their 2009 holdings, and 40% of the total. Apple alone holds $178 billion.

Source: Treasure chests | The Economist

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