A report in the Wall Street Journal today found that American companies are hoarding cash, ostensibly while waiting for that proverbial rainy day. In an analysis of company filings, it learned that the 500 largest non-financial companies in the country held $994 billion at the end of the second quarter in cash and cash equivalents, amounting to 9.8 percent of their total assets. A year earlier, they had only $846 billion (7.9 percent) in this category.
And, it looks like this is continuing into Q3. Of the 248 companies that have reported so far, cash holdings are up to 11.1 percent of assets quarter over quarter.