rocketpig on 05 August 2008
To add to what NJ5 said, massively profitable companies will sometimes keep large amounts of cash around for a few reasons:
1. They don't know what to do with it (see Blizzard)
2. They're planning on buying something really big soon (see MS and Yahoo!, even that deal was to be heavily financed by MS)
3. They're expanding into something new
But overall, companies try to keep very little cash on-hand. It's bad for them in a few different ways (the money doesn't grow, taxes, etc).
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