Excess cash utilization refers to the strategic allocation and management of surplus cash that a company holds beyond its operational needs. This surplus cash can be deployed in various ways, including stock repurchase programs or treasury stock acquisitions, to enhance shareholder value or optimize the company's capital structure. Effectively utilizing excess cash can lead to increased return on equity and improved market perceptions of the company.
congrats on reading the definition of Excess Cash Utilization. now let's actually learn it.