Cash And Cash Equivalents

Mondo Visione  Mar 28  Comment 
The European Banking Authority (EBA) published today its final draft Implementing and Regulatory Technical Standards (ITS and RTS) related to liquidity requirements. The package includes: (i) final draft ITS on currencies for which the justified...
Disciplined Approach to Investing  Mar 24  Comment 
I was taken aback by an article that appeared on the Washington Post's Wonkblog. The article title, Living paycheck to paycheck: It’s not just for the poor, states a wealthy individual is one with no liquid assets and $50,000 in illiquid assets....
SeekingAlpha  Mar 16  Comment 
By Regarded Solutions: There were several Seeking Alpha articles this week that actually were fun to read. This article was about an individual who has plenty of liquid assets ($15,000,000) and has decided to retire, and wants to know how he can...
SeekingAlpha  Feb 21  Comment 
By John Gerard Lewis: "Cash is trash" is commonly heard amid the fervor of stock market rallies, like the one last year. Cash was a worse option than stocks or just about anything else. But that interjection continues to be heard for another...
Sydney Morning Herald  Feb 14  Comment 
Arsenal chairman Chips Keswick has told Arsene Wenger he is free to splash the cash in the next transfer window after the Premier League club revealed cash reserves of over STG120 million ($A223 million) in their latest financial results.     
Financial Times  Feb 12  Comment 
Volatility in emerging markets has been inflamed by the ability of exchange traded funds to exit quickly from large, liquid assets
DailyFinance  Feb 11  Comment 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/11/14 -- Following the completion of the Plan of Arrangement with Chalice Gold Mines Ltd ("the Transaction"), Coventry ("the Company") (ASX:CYY)(TSX VENTURE:CYY) remains a viable dual listed...
Sydney Morning Herald  Feb 6  Comment 
Joe Hockey flags new era of privatisation aimed at unlocking billions in private cash reserves, and using the proceeds to fund new infrastructure.     
Financial Times  Feb 2  Comment 
Government and central bank are both lobbying ECB to allow Danish mortgage bonds to be treated as first-class liquid assets
Clusterstock  Jan 30  Comment 
Dylan Grice is leaving Edelweiss Holdings to join Aeris Capital, a private investment office, in Zurich. Aeris Capital manages assets for a European family and its charity. Grice told Business Insider that he will be setting up his own capital...


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

Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki