A healthy cash position is an important indicator to evaluate whether a company’s financials are sound to withstand any unforeseen shocks.

Cash-rich companies are usually supported by “liquidity buffer”, which allows them to meet their debt obligations easily.

Operational expansion could also be carried out with much ease without the reliance on external financing. As for shareholders, cash-rich entities offer promising dividend payouts without resorting to borrowings.

In Bursa Malaysia, several companies have built strong net cash positions over the years. Data compiled shows that the Genting Group has topped this coveted list, with a whopping net cash position of RM8.8bil as at Dec 31, 2017.

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