With the pandemic hampering sales, businesses are emphasizing liquidity. Some notable examples include Intuit, which said on May 7 drew down its entire $1 billion credit facility “to maintain financial flexibility during this period,” the company said.

It had $7 billion in cash and investments balance on April 30. Intuit is in the process of a solicitation offer to buy Credit Karma for $7.1 billion with half of that cash and the rest Intuit common stock. Tax services company H&R Block acted similarly when it completely drew down its $2 billion revolving credit line in late March and reported that on March 26 there was a cash position “in excess of $2.6 billion” in unrestricted cash balances. Sage also focused on liquidity during this week’s earning webcast the with CEO Steve Hare reporting his company has  “$1.3 billion in cash and available liquidity.” Nonprofit software company Blackbaud said this month it created an additional $300 million in borrowing capacity. Its balance sheet of March 31 shows nearly $25 million in cash. A variety of steps have been taken to converse cash, including hiring freezes and bans on all but essential travel. Sage halted its stock buyback program but raised its dividend while in March Blackbaud suspended its divided. Oracle sold $3.5 billion in long-term notes in this spring and $23.8 billion in cash and cash equivalents on its balance sheet on February 28. Companies are also cautioning changes to their allowances for losses on loans and credit.

Last modified on Friday, 15 May 2020
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