Cash And Cash Equivalents

Financial Times  Nov 3  Comment 
Banks fear they will have to boost cash reserves
WA Business News  Nov 3  Comment 
Embattled collier Continental Coal has struck a $70 million deal to offload its interest in its South African subsidiary, leaving the company debt free and with excess cash reserves.
WA Business News  Nov 3  Comment 
Mondo Visione  Oct 31  Comment 
The Securities and Exchange Commission today announced securities fraud charges accusing a New York businessman and his software company of making false statements to investors while raising more than $3 million to fund operations. The SEC’s...
Financial Times  Oct 28  Comment 
Outflow pressure prompts managers to bulk up on liquid assets
The Australian  Oct 23  Comment 
ATLAS Iron has continued to chew up its cash reserves as it fights for profitability in the face of plummeting iron ore prices.
Forbes  Oct 20  Comment 
By some counts, adults born after 1980 -- aka, Millennials or Generation Y -- control $2 trillion in liquid assets. Within the next six years, that number will surge to $7 trillion. Some may think we're lazy and entitled, but we're ripe for the...
The Economic Times  Oct 13  Comment 
The govt has set up a committee to examine ways sick public companies can be resuscitated, including using cash reserves to provide lifelines to the loss-making ones, according to officials.
SeekingAlpha  Oct 8  Comment 
By Alpha Exposure: While SFX Entertainment (NASDAQ:SFXE) proclaims itself to be a leader in EDM and house music festivals, we believe that SFXE is actually a house of cards headed towards imminent collapse. Despite owning a portfolio of popular...
Forbes  Sep 30  Comment 
They say cash is king. But a report from the UK arm of the professional services firm Deloitte suggests it might be a bit more complicated than that. The study, The cash paradox: How record cash reserves are influencing corporate behaviour,...


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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