What Will These 5 Companies Do With Half a Trillion Dollars?

What Will These 5 Companies Do With Half a Trillion Dollars?

Cash is one of the most valuable assets a company can have. Smart businesses can deploy cash to take advantage of opportunities for expansion and growth, while also wooing investors by offering them a share of the spoils through dividends and share buybacks. When you look at the top non-banking companies with the most cash and short-term investments on their balance sheets, you'll find Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) at the top of the list, followed by Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B). Also making a respectable showing are fellow tech giants Apple (NASDAQ: AAPL) and Cisco Systems (NASDAQ: CSCO). In total, these companies reported $463 billion in cash and short-term investments, and when you add in certain investments that are classified as long-term, their available war chests are even larger than that.

For all of these companies, cash levels have been on the rise in recent years. Looking more closely at how they've come up with their cash and what plans they have for its future use is essential in order to understand the underlying business strategy that these companies are following.

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Source: Fool.com