Corporate Cash Statistics: At an All Time High. Really?

We spotted this today:

"Cash (and cash equivalents) on the balance sheets of current S&P 500 members (ex-financials) is at an all time high, which the bulls (which we are one of) argue is a positive element. While we are not usually one to squash fellow bulls this time they perhaps have their thinking incorrect.

We think a better way to represent cash is as a percentage of market capitalization. By this measure cash has been falling and now stands at 7.4% compared to 9.2% at the start of the bull market in March 2009. The increase in the stock market has been responsible for the decrease in cash as percentage of market value."

Statistics Source: TickerSense