How much cash should a company hold? See our latest: Cash Holdings: Data, Theory, and Alternatives @dcallz -We seek to discern the proper amount of cash a company should hold, a big issue in capital allocation. - Cash is at the same time a non-productive holding and a resource that provides financial flexibility. - Empirical data on the cash holdings of public companies in the U.S. since 1970 reveals a steady increase since 1990 driven by the rise in intangible assets. - We discuss theories of why companies hold cash and review options to disburse excess cash.