Was discussing with others GME’s cash holdings, and how usual or unusual that was amongst prominent companies.

Cash holdings alone don’t say much about the health of a company. More relevant questions include where the cash came from, and what they are planning to spend it on. If a company doesn’t effectively grow than a large cash position can be more of a liability than an asset.

I was curious about the ratios, pulled numbers online and just sharing it here for others. GME has a fairly large cash position compared to its market cap in this sample size, with General Electric standing out as a notable and large outlier with over half it’s market cap available in cash.

  • Fascist Lib Instance@lemmy.dbzer0.com
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    1 year ago

    I imagine only the companies that believe the markets could fail would bring a large sum of cash into a downturn.

    GME could make insane acquisitions when the markets tanked, if they played their cards right.