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Mixed year for corporate bond sales
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Opinions and views from expert CFOZone members.

Tag >> capex
Dec 14

Bonus depreciation no bonus, says one expert

Posted by Stephen Taub in TaxdepreciationCredit suisseCashcapital expenditurescapital equipment outlayscapexbonus depreciation

Stephen Taub

While much of the focus of the pending tax cut package seems to be on the reductions and breaks for individuals, there are some goodies tucked in for corporations as well.

They include a two-year extension of the research and development credit, which covers employment costs of employees involved in research, and $22 billion for accelerated depreciation, which allows companies to write off all of their costs of assets placed in service after September 8, 2010 and through December 31, 2011, in one year. This will be followed by 50 percent bonus depreciation for assets purchased during 2012.

Oct 09

SMIDs prefer technology to employees

Posted by Stephen Taub in jobshiringCashcapital expenditurescapex

Stephen Taub

Small business owners prefer spending money on their company than on people.

According to a new biannual survey which gauges the mood and sentiment of small and medium sized business owners, nearly two-thirds (63 percent) plan to increase capital spending during the next six months. This is up sharply from 49 percent in the spring, according to the PNC Economic Outlook survey.

Jul 28

Is small business optimism on the rise?

Posted by dbedell in SMEsmall businesssmall and medium-sized businessHSBCgrowthCashcapex


According to a new survey by HSBC, small business confidence worldwide is on the rise.

HSBC's Small Business Confidence Monitor measures the outlook of small-to-medium size enterprises on local economic growth, capital investment plans and recruitment. The survey found that 84 percent of SMEs across the globe are optimistic about local economic growth, and many respondents intend to increase capital expenditure and hire new employees over the next six months.

Jul 08

Why companies aren't spending

Posted by Ron F in recoveryrecessionObama Administration, Obama, jobsjoblessnessemploymenteconomy, earnings, demand, cash position, cash management, Cashcapital expenditurescapex

Ron F

There's a political debate heating up about companies' hesitancy to invest the cash they're sitting on.

Essentially, the Democrats--or at least those in favor of further government stimulus measures such as a jobs program or at least extended unemployment benefits--argue that companies are wary of spending because of the lack of aggregate consumer demand.

Jul 01

Companies sitting on still more cash

Posted by Ron F in TaxTARPrecoveryrecessioneconomydemanddefaultconsumer spendingCongress, cash management, cash concernsCashCarmen ReinhartCareers/Managementcapital expenditurescapexBanks

Ron F

A survey released today by the Association of Financial Professionals will do nothing to dampen the austerity versus stimulus debate.

To wit: Forty-three percent of US corporations had larger US cash and short-term investment holdings this May than they did six months earlier. Only 24 percent of respondents reported that their short-term holdings had shrunk during the past six months.

May 16

Time to rethink capex

Posted by SherylNash01 in Cashcareer/managementcapex


With companies holding cash rather than putting it into property, plant and equipment, it's becoming more important that they prioritize their opportunities for deploying it. If they fail to exploit them, sooner or later investors will start demanding their capital back. And the more cash on the balance sheet swells, as it has of late, the sooner that time will be.

Sam Silvers, author, Finance Transformation: Think a la carte, not overhaul, and Deloitte Finance Transformation Practice Leader, offers some fresh insight into how to get enough out of capital investment to be worth the risk.

May 11

Finance executives aim for growth while preserving discipline

Posted by mcole in RiskrecoverygrowthCFOCashcapex


Global senior finance executives are becoming more confident about the economic recovery, but they are proceeding with caution when it comes to spending their company's cash, according to a survey released Monday.

Finance executives have started to invest in growth-oriented categories such as sales and product development, while selectively increasing discretionary spending in areas such as marketing and technology, according to the third annual American Express/CFO Research Global Business & Spending Monitor, which polled 479 senior finance executives from the U.S., Europe, Canada, Mexico, Asia and Australia.

Feb 11

History shows tax cuts produce lower capital investment

Posted by Ron F in unemployment, TaxrecoveryrecessionjoblessnessFederal ReserveeconomyCashcapital expenditurescapex

Ron F

This Bloomberg article on the dearth of corporate capital spending reports some important data, but ends up allowing a Bush era economist to spew hogwash about what will get companies to invest once again.

The amount of cash sitting on the balance sheets of the S&P 500 has soared by 78 percent from a year earlier, to $1.2 trillion, as capex has dwindled. And the article goes on to note that this is hurting an economic recovery by inhibiting employment growth, and with it, increased demand, which companies need to see before they start spending again. It's a chicken-or-egg situation, as Matt Quinn pointed out the other day.

Feb 10

It's the global economy, stupid

Posted by Ron F in recoveryrecessionObama Administration, Obama, europeeconomyCongressCareers/Managementcapital expenditurescapexbailouts

Ron F

Lost in the hubbub over the financial condition of Greece and other weak E.U. members is the fact that the U.S.'s member states are in terrible shape as well, and those such as California and New York have bigger economies. Except that Barry Ritholtz has some data on this.

While Greece's economy is only the 34th largest in the world, California's is the 8th largest, equal to that of France.

Jan 29

AT&T;'s results are an object lesson for the economy

Posted by Ron F in recoveryjoblessnessemploymenteconomy, earnings, cost cuttingCashcapital expenditurescapex

Ron F

AT&T's fourth-quarter earnings results show why policymakers have to spend less time focusing on short-term moves in the capital markets and more on economic fundamentals.

The company said it will increase capital spending by almost $2 billion, or 10 percent, to improve its much-maligned network by adding more cell towers and connecting them to faster fiber optic lines.

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