You are here

Buybacks get costly for S&P 500 CEOs burning cash

Crux of issue is falling earnings - six straight quarters of negative growth for S&P 500 firms
Wednesday, September 7, 2016 - 05:50
BT_20160907_BUYBACK7A_2479341.jpg
Cash fell 26% at Google parent Alphabet Inc from a year ago.
BT_20160907_BUYBACK7A_2479341.jpg
The largest losses are in oil companies like Chesapeake Energy Corp, where reserves of US$2.1 billion plunged to just US$4 million over the past year.

LITTLE by little, the corporate cushion is shrinking. Pressured by a year-and-a- half of weakening profits and splurges on buybacks and dividends, the once-towering piles of money at American companies have started to topple. Cash and equivalents slipped to a median US$860 million at S&P 500