Our recent research evaluated policy aspects such as hedging effectiveness and the cost of hedging. Data from polling suggests that answering key questions: “Do we need an FX policy?” and “How can I improve compliance with our existing policy?” can improve the caliber of your policy and heighten the overall effectiveness of the FX process. [...]
Read more(CFO, 26 April 2012) In Brief: Many treasurers are looking to boost their returns on short-term cash – as long as the associated risks are reasonable and don’t fall outside of corporate investment policies. However, some companies are loosening their “extremely conservative attitude” and altering their policies to accommodate longer maturity dates, according to this [...]
Read more(Bloomberg, 26 April 2012) In Brief: More S&P 500 companies are paying dividends today than at any time since 2000, according to S&P’s senior index analyst, who is predicting a record $279 billion in total payouts this year. Our View: Before making a decision to pay a dividend, ensure that your cash return policy reflects [...]
Read more(Business Finance, 26 April 2012) In Brief: Forty percent of corporations increased their cash balances in Q1-2012, while 27% reduced them, according to a new study. While this ratio has narrowed, the growth in excess corporate cash “shows no signs of letting up,” this writer says. One consultant cited in this article attributes rising cash [...]
Read more(Investment Executive, 17 April 2012) In Brief: Renewed concerns about the EU debt crisis have prompted investors to increase their cash positions significantly since last month. According to a new BofA Merrill Lynch survey, 24% have more cash on hand than they usually do, a 6% increase from March. “Investors have moved to a more [...]
Read more(Harvard Business Review, 16 April 2012) In Brief: Uncertain macroeconomic and regulatory conditions provide a valid argument for maintaining high cash balances—while pressure mounts from politicians and shareholders to put it to use, this writer says, and finance organizations can take measures to assuage investor concerns. He advises companies to be open to alternative uses, [...]
Read more(CFO, 13 April 2012) In Brief: Google announced a two for one stock split in an earnings call last week, creating a third group of “class C” nonvoting shares. Investors will receive one share of the new stock for each that they currently own. The news came after the internet giant – which now holds [...]
Read moreFinding the right opportunities to improve the cash flow forecasting process will lead to positive results. The best companies take two steps to increase the accuracy of their cash flow forecasting. They: Design a robust cash flow forecast process Are diligent about forecast variance reduction How Accurate Is Your Forecast? In a recent survey of [...]
Read more(The New York Times, 19 March 2012) In Brief: Apple announced yesterday that it plans to pay a quarterly dividend of $2.65 per share, and its Board has authorized a $10 billion buyback program. Apple executives said the plan would make their enterprise one of the top dividend-paying companies in the US, but that “these [...]
Read more(CFO, 7 March 2012) In Brief: While dividends require a firm commitment, they can attract a broader base of investors and force companies to be fiscally responsible, this writer says, adding that dividend policies are more flexible than many CFOs think. Some executives believe the percentage of earnings distributed should vary and extol the benefits [...]
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