Asizeable cash surplus presents companies with significant medium-term and long-term choices. The obvious option of sitting on the cash may also be the most logical when a company anticipates attractive acquisitions shortly becoming available. In a period of weaker economic growth, it may be able to snap up a struggling rival and strengthen its position in the market. The low cost of borrowing in recent years has also seen many UK companies deliberately accumulate cash for use at a later date.
