Too much Liquidity? Decapitalization Strategies

Too much Liquidity? Decapitalization Strategies

In Strategy+Business, Issue 46, Spring 2007, BAH VP Justin Petit argues that many companies are sitting on mountains of cash and need a decapitalization strategy. Decapitalization categories include:
1. Operating Liquidity (to finance work in progress)
2. Growth Capital (research, expansion,design, development, acquisitions)
3. Share Repurchases
4. Pension Funding
5. Dividends
6. Debt Reduction.

		Comments Rating
		0 Ritu Singh, India
	Why Increase Cash to Current Ratio? What is the effect of increasing this Cash to Current Ratio?