Extra cash flow from tax reform to be invested

BVWireIssue #187-2
April 11, 2018

legislation
cash flow, discounted cash flow (DCF), cash flow projections, Tax Cuts and Jobs Act

Much of the windfall savings companies are expecting from the new tax law will be used to increase domestic investment, according to a Deloitte survey of CFOs. They will also boost hiring and wages and repatriate cash abroad. Most of the CFOs polled said they plan to use repatriated cash for investment in both core and new businesses as well as R&D, followed by debt repayments, buybacks, and dividends. While many expect some increase in hiring and pay, it does not account for as much of their anticipated spending as the other areas. The survey polled 155 CFOs, nearly all of whom are from companies with over $1 billion in revenue.
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