Cash and Equivalents
Refers to how much cash the company has on hand. ""Equivalents"" means things like certificates of deposit, commercial paper and the like, which can quickly and easily be converted into cash.
cash and equivalents investment & finance definition
The sum of cash and short-term assets that can be easily converted to cash. This measure of corporate liquidity indicates a firm's ability to meet its short-term obligations.
Cash and equivalents
Definition:
The value of Assets that can be converted into Cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government Bonds and Banker`s Acceptances.
Cash and Equivalents
The value of assets that can be converted into cash immediately, as reported by a company. Usually includes bank accounts and marketable securities, such as government bonds and Bankers' Acceptances.
Cash and equivalents + receivables + inventories +other current assets. All these can be converted to cash within a year.
Current Liabilities
The sum of all money owed and due within one year.
The cash and equivalents are pretty straight foward. They are what they sound like. This line item on the balance sheet represents the cash a company holds in bank accounts, savings accounts, CDs, and money market accounts.
That's right -- it invests the cash, either in short-term paper (so short that it's often denoted "cash and equivalents"), debt of slightly longer duration ("short term investments"), or in longer-term debt.
The three main asset classes - equities, fixed-income, and cash and equivalents - have different levels of risk and return, so each will behave differently over time.
Assumed Interest Rate - AIR ...
 See also: Cash, Asset, Balance, Short, Return
  
|
RSS
