(AJC) Last month, UPS executives proudly detailed the profitable quarter that drove the company cash trove above $4 billion. Wall Street’s response? “Show me the money.”
“You’re sitting on a lot of cash,” complained one analyst in a conference call last month with executives, joining a chorus of investors who wanted to know why UPS wasn’t paying them higher dividends or using the money to expand the company.
It’s a question that could be asked of a lot of companies these days.
Economic growth has been anemic overall, yet corporations that cut deeply during the Great Recession are seeing soaring profits. And they’re stuffing mountains of cash into their bank accounts.