Cash And Equivalents

Asset symbol is not found or was delisted

We are unable to locate this entity at this time. If you believe the symbol you are trying to look up is valid, please let us know, and we will check it out. Check all delisted instruments across multiple markets.

Indicator Description

Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).

Cash

 = 

Bank Deposits

+

Liquidities

Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.

Cash And Equivalents In A Nutshell

Cash and equivalents is exactly what it says, cash and anything that can be converted to cash quickly. Liquid assets would fall under this category and that could be a car, some machinery, or anything that can sell quickly to be turned into cash.

When taking a look at the fundamentals of a stock, you check over everything, the debt, cash flow, outstand shares, and then there is cash and equivalents.

Closer Look at Cash And Equivalents

This is important for a few reasons, and first is you want to know how quickly the company can use these in the case of a complete meltdown in cash flow. There are ratios out there that can tell you how many times the company can pay debts, but you want to ensure cash and equivalents are at respectable levels.

Cash flow is the lifeblood of a company and if that begins to slow there could be some real issues on the horizon. Typically you will know if a company is having cash flow issues and Sears is an example as money continues to be pumped into the company while it is failing.

With all of this being said, be sure to take a real good look at this data point and discover what makes up this line item. Of course there are many other items you should be looking at beside cash and equivalents, but this is a main factor. Technically, this may not be of much use as there is not much of an indicator. Sure there may be data points you can plot at the bottom of a chart, but this should be used more fundamentally than anything. If you ever get stuck, reach out to an investing community and see what others are doing in the market today. When in doubt, research more and more by surfing the web and reading articles. It is important to know what to look for in a stock and learning this will be time well spent.

Other Suggestions

STE STERIS plcCompany
STEYX International Strategic EquitiesMutual Fund
STEW SRH Total ReturnETF
STETH Staked EtherCryptocurrency

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Generate Optimal Portfolios

The classical approach to portfolio optimization is known as Modern Portfolio Theory (MPT). It involves categorizing the investment universe based on risk (standard deviation) and return, and then choosing the mix of investments that achieves the desired risk-versus-return tradeoff. Portfolio optimization can also be thought of as a risk-management strategy as every type of equity has a distinct return and risk characteristics as well as different systemic risks, which describes how they respond to the market at large. Macroaxis enables investors to optimize portfolios that have a mix of equities (such as stocks, funds, or ETFs) and cryptocurrencies (such as Bitcoin, Ethereum or Monero)
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Other Complementary Tools

Sectors
List of equity sectors categorizing publicly traded companies based on their primary business activities
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk