CompanyGraph
Captures the most immediately available money the company holds, exposing the raw liquidity floor before any conversion of other assets.
Cash is the money the company has immediately available in bank accounts and on hand. It is the most liquid asset and can be used instantly for payments and investments.
Cash is the money the company has immediately available in bank accounts and on hand. It is the most liquid asset and can be used instantly for payments and investments.
What counts as cash:
- Currency on hand: Physical money held by the company
- Bank deposits: Money in checking and savings accounts
- Demand deposits: Funds accessible without restrictions
Why cash matters:
- Liquidity: Immediate ability to pay bills and obligations
- Operational flexibility: Funds available for day-to-day operations
- Emergency buffer: Protection against unexpected expenses or revenue shortfalls
- Opportunity fund: Resources to seize investment opportunities
Analysis considerations:
- Too much cash: May indicate lack of investment opportunities or poor capital allocation
- Too little cash: May signal liquidity concerns or aggressive working capital management
- Cash burn rate: For loss-making companies, how long until cash runs out
- Cash per share: Compares cash balance to market capitalisation
Cash is often combined with cash equivalents on the balance sheet. The cash flow statement reconciles the change in cash position from period to period.
How it relates
Cash+Cash EquivalentsCash equivalents are very short-term, low-risk investments that are almost as liquid as cash, such as money market funds. Together with cash they form the company's most accessible funds.=Cash & Cash EquivalentsCash and cash equivalents combines cash and near-cash investments. It shows how much very liquid money the company has available to meet obligations or seize opportunities.