## Figure 1.7. Policy Stimulus and Corporate Balance Sheets

## Source details

**Canonical URL:** [Figure 1.7. Policy Stimulus and Corporate Balance Sheets](https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-7-v2.pdf)

## Other formats

- [Markdown version](/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-7-v2.pdf.md)
- [Structured JSON version](/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-7-v2.pdf.json)

---

### 1. Cash Flow versus Capital Expenditure for S&P 500 Firms, by Sector
- Metric: (Percent of assets)
- Observations as labeled in figure:
  - Consumer discretionary 11%
  - Information technology 12%
  - Energy 27%
  - Real estate 13%
  - Consumer staples 7%
  - Industrials 11%
  - Health care 4%
  - Materials 4%
  - Telecom-munications 7%

### 2. Effects on Operating Cash Flows from Additional Tax Proposals on Deductibility and Expensing
- Metric: (Percent of assets)
- Summary statement from figure: "A tax cut of 10 percent could support higher investment but financing gaps remain."
- Policy proposals and labeled impacts:
  - Full expensing of new capex
  - Removal of interest deductibility on new debt
  - Net impact (figure shows combined effect of above)

### 3. Unrepatriated Income, by Sector
- Metric: (Total in U.S. dollars, sectoral shares in percent of total)
- Summary statement from figure: "Cash windfalls from repatriation would likely accrue to cash abundant sectors."
- Cash and investments: ~$1.3 trillion

### 4. Capital Expenditures by S&P 500 Firms, by Sector
- Metric: (Share of total assets, 2012–16 average)
- Summary statement from figure: "Three cash constrained sectors account for almost half of capital expenditure."

### 5. Cash Flow Decomposition for S&P 500 Firms, by Sector
- Metric: (2012–16 average)
- Summary statement from figure: "Debt has been used to finance both economic and financial risk taking."
- Uses of financing / Sources of financing (as labeled):
  - Uses of financing: Economic risk taking; Financial risk taking; Total
  - Sources of financing: Operating cash; Increase in debt
- Sector-level totals and labels shown in figure (values presented exactly as in source):
  - S&P 500 (1,896)
  - Utilities (106)
  - Telecommunications (99)
  - Consumer discretionary (256)
  - Consumer staples (166)
  - Energy (210)
  - Real estate (32)
  - Industrials (179)
  - Materials (61)
  - Information technology (495)
  - Health care (289)
  - Additional labeled totals and component values displayed in figure (precise ordering preserved):
    - (1,818) (110) (80) (247) (157) (211) (39) (164) (59) (474) (274)
    - 303 940
    - 877 1,594
    - 79 27 85 25 181 29 177 34 25 7 28 11 79 20 44 36 55 6 33 26 198 58 92 155 179 92 72 427 67 185 289 140 25 48 109 229 60 91 183

### Key captions, notes, and labels
- Panel captions:
  1. Cash Flow versus Capital Expenditure for S&P 500 Firms, by Sector (Percent of assets)
  2. Effects on Operating Cash Flows from Additional Tax Proposals on Deductibility and Expensing (Percent of assets)
  3. Unrepatriated Income, by Sector (Total in U.S. dollars, sectoral shares in percent of total)
  4. Capital Expenditures by S&P 500 Firms, by Sector (Share of total assets, 2012–16 average)
  5. Cash Flow Decomposition for S&P 500 Firms, by Sector (2012–16 average)
- Additional labels and notes in figure:
  - "Financing gaps 108 5 28"
  - "Cash constrained Cash abundant"
  - "Pre-2000 capex Current capex"
  - "Capex = capital expenditures; S&P = Standard and Poor’s."
  - "Uses of financing" and "Sources of financing" headings applied to panel 5

*Sources: Bloomberg L.P.; S&P 500 company reports; Securities and Exchange Commission; and IMF staff estimates.*

---


_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/april/chapter-1/figure1-7-v2.pdf_