Here&#x27;s a possible explanation. In the industrial days it made sense for companies to invest in plant and machinery. These days most of the value is intellectual capital and high wage employees. It makes sense to hold a load of cash so you can pay those high wage employees if there&#x27;s a blip in sales.<p>(The industrial the mentioned, GM may have $15bn in cash but it also has $73bn in current liabilities so it&#x27;s not really rolling in vast excesses)