Is it a good or a bad sign when companies are sitting on large amounts of cash?

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Is it a good or a bad sign when companies are sitting on large amounts of cash? Why? What would be the justification for paying dividends with the spare cash or buying back their own shares? What else might the cash be used for?

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Accounting For Non Accounting Students

ISBN: 9781292286938

10th Edition

Authors: John Dyson, Ellie Franklin

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Question Posted: Dec 16, 2022 10:02 AM

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Is it a good or a bad sign when companies are sitting on large amounts of cash?

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Having a large cash reserve can be seen as a good sign for a company because it indicates that the company is financially stable and has strong cash f...View the full answer

Accounting For Non Accounting Students

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