Far from US corporations having an excess of cash, there appears to be a cash deficit.

In the last article I argued that the growth in corporate cash balances is not as dramatic as is often reported by ana-lysts, commentators and the press.

In this post, I will show that corporate cash balances are actually growing more slowly than profitsSome quick statistics from the US Bureau of Economic Analysis: US corporate profitssince 2007 have grown at a compound annual growth rate (CAGR) of 10.58%, versus a CAGR of 8.74% for liquid assets.

By these…