Sustainable competitive advantage are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long-term position over competitors.

In this document, the author said that Strong Balance Sheet / Cash is a type of "Sustainable competitive advantage"

Strong Balance Sheet / Cash is :

Companies with low debt and/or lots of cash have the flexibility to make opportune investments and never have a problem with access to working capital, liquidity, or solvency (i.e. Johnson & Johnson (JNJ).The balance sheet is the foundation of the company.

I am wondering if there is any peer reviewed paper claiming the same thing?

  • 1
    $\begingroup$ What do you mean, ‘official paper’ $\endgroup$
    – dm63
    Jun 18, 2021 at 14:41
  • $\begingroup$ I mean, the papers on academic journals. $\endgroup$ Jun 18, 2021 at 22:00

1 Answer 1


There are many academic articles documenting the strategic advantage of cash. Two examples that I have read recently are: Revisiting the concept of a competitive “cash advantage” and Cash is surprisingly valuable as a strategic asset.


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