Are the region’s biggest companies keeping enough cash for a recession? | Business Observer

Most public companies headquartered on Florida’s Gulf Coast had less cash on hand in mid-2022 compared to the start of the year.

Will a smaller reserve hurt these businesses if and when there’s a prolonged economic downturn — or recession?

Among the 10 largest publicly traded companies by revenue, the one that saw the biggest decline was Estero-based Hertz Global Holdings Inc.. 2021, down to just over $1 billion on June 30, 2022. Despite the drop, on an earnings call with investors, Chief Financial Officer Kenny Cheung said the balance sheet “remains very strong,” pointing to $2.5 billion in total liquidity, with $1 billion in unrestricted cash augmented by $1.5 billion available under the company’s revolving financing.

Read more: The recession conundrum extends deep into the region, with a multiplier impact

Despite the trend, some companies have increased their cash stocks, namely Lakewood Ranch-based Roper Technologies Inc., which now has nearly $3 billion in cash and near cash, after holding just $352 million. at the end of last year. The company also recently entered into a five-year, $3.5 billion revolving credit facility, making it “very well positioned for meaningful capital deployment,” according to chief financial officer Rob Crisci in the latest earnings call. of the society.

Across the 10 largest public companies in the region, the median change in cash from a year ago was down about 17%. The average was a 59% increase, but that number is boosted sharply by Roper’s 719% gain.


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