Cash And Cash Equivalents

Motley Fool  May 22  Comment 
Addressing Medicare's fundamental flaw is the best way to fix the program for future generations.
The Australian  May 9  Comment 
The stem-cell product developer has posted a lower Q3 loss but a cash reserves dip has seen its shares sink 10pc.
Benzinga  May 4  Comment 
Howard Marks, Oaktree Capital Group LLC (NYSE: OAK) Co-Chairman, was on CNBC Wednesday discussing his investment outlook. Talking about the firm’s large cash reserves, the investor was asked what they're waiting for. "We think that the...
Motley Fool  Apr 29  Comment 
The Coca-Cola partnership is paying off in many ways, but there's still a lot of untapped territory left to explore.
Financial Times  Apr 29  Comment 
Brexit threat, stamp duty changes and market wobbles affect sentiment
The Economic Times  Apr 15  Comment 
Liquid assets including cash and cash equivalents, available-for-sale financial assets and government bonds were Rs 34,468 crore as on March 31, 2016.
Insurance Journal  Mar 17  Comment 
German reinsurer Munich Re is boosting its gold and cash reserves in the face of the punishing negative interest rates from the European Central Bank, it said on Wednesday. The world’s largest reinsurer is far from alone in seeking...
FierceBiotech  Mar 10  Comment 
Strongbridge Biopharma has returned the rights to Phase II acromegaly drug COR-004 just 10 months after acquiring the product. The transatlantic biotech offloaded the rare disease program as part of a pipeline prioritization intended to stretch...  Mar 10  Comment 
Retailer bolsters cash reserves amid takeover battle as Argos slows sales decline Home Retail Group has halved the pace of sales declines at its Argos chain and bumped up cash reserves amid a takeover battle between Sainsbury’s and the South...


Cash and cash equivalents are assets in actual cash or quickly convertible to cash

Cash and cash equivalents are the most liquid current assets found on a company's balance sheet. They are assets that are easily and quickly converted into cash or are, in fact, cash. It should be noted that while functionally "cash equivalents" are eponymously equivalent to cash, this is not literally true; the Financial Accounting Standards Board (FASB) defines "cash equivalents" as highly liquid securities with maturity of 3 months or less. As such, a three-month treasury bill would be considered a cash equivalent.

A company's ability to generate cash a keep cash and cash equivalents is a primary indicator of its health. Companies with disproportionately high net assets relative to its cash and cash equivalents is generally an indication of non-liquidity.

For individual investors and companies, cash and cash equivalents are generally considered to be a safe investment with low risk and low returns. That is to say, maintaining significant assets in cash and cash equivalents (rather than investing them in securities or back into the company) is a low-risk investment strategy.


Examples of cash and cash equivalents are:

  • Cash in a bank account
  • Physical cash on hand
  • Certain Treasury Bills
  • money market instrument

Cash and Cash Equivalents data on Wikinvest

Wikinvest calculates Cash and Cash Equivalents by including cash at hand, restricted cash and gold bullions (except in the case of gold producing companies). Short-term investments such as commercial paper, T-bills or time deposits are included under the metric short-term investments.

The result may be different from other finance web portals (such as Yahoo! Finance) due to a different treatment of short-term investments. Cash For Gold Belfast

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