CompanyGraph
Captures liquid financial assets held for under a year outside standard cash equivalents, exposing near-term capital parked in tradeable instruments.
Other short-term investments are financial assets that can usually be sold or converted into cash within a year, such as marketable securities. They add to the company's flexibility beyond pure cash.
Other short-term investments are financial assets that can usually be sold or converted into cash within a year, such as marketable securities. They add to the company's flexibility beyond pure cash.
Common types:
- Marketable securities: Publicly traded stocks and bonds
- Treasury securities: Government bonds with maturities over three months
- Corporate bonds: Debt securities from other companies
- Certificates of deposit: Bank CDs with maturities over three months
- Commercial paper: Short-term corporate debt
Why companies hold short-term investments:
- Higher yields: Earn better returns than cash while maintaining liquidity
- Cash management: Deploy excess cash productively
- Strategic reserves: Funds earmarked for specific purposes
- Diversification: Spread risk across different instruments
Analysis considerations:
- Liquidity quality: Less liquid than cash but should be readily convertible
- Market value changes: Investment values may fluctuate
- Unrealised gains/losses: May impact equity or income depending on classification
- Maturity profile: When investments mature affects actual liquidity
When assessing liquidity, add short-term investments to cash and cash equivalents for a fuller picture of available resources. Review the notes for composition and any restrictions on use.
How it relates
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.+Other Short-term Investments+Accounts ReceivableAccounts receivable is money owed to the company by customers who have not yet paid. Rising receivables can mean growing sales, but also that cash collection is slower.+InventoryInventory is the value of goods the company has produced or bought and not yet sold. Too much inventory can tie up cash, while too little can lead to lost sales.=Total Current AssetsTotal current assets includes cash and other assets that are expected to be turned into cash within a year, like receivables and inventory. It is a key part of the company's short-term financial strength.