Which factor would indicate that a company has retained cash?

A decrease in working capital indicates that a company has retained cash because it reflects a reduction in the company's operational investment in current assets, such as accounts receivable and inventory, relative to its current liabilities. When a company effectively manages its working capital, it can free up cash that was previously tied up in these assets. This cash can then be retained for various uses, such as reinvestment in the business, paying down debt, or other strategic purposes.

In this context, the retention of cash is often viewed as a sign of efficient resource management, where the company is able to streamline its operations or optimize its cash conversion cycle. This can lead to enhanced liquidity and the ability to respond to future opportunities or downturns without needing to rely on external financing sources.