This figure is the total amount of cash, cash equivalents, and marketable equity securities held by the company for the time period listed. Cash, as with other balance sheet items, is shown in millions of dollars ($M) and is current as of the last day of the specified reporting period.
Benefit
Cash is the most liquid type of assets, so companies with a large cash reserve are prepared for emergencies. However, too much cash is not necessarily a good thing; it could indicate that a company can’t figure out what to do with the money it’s making.
Origin
This information is found on the Balance Sheet of the company’s most recent 10-Q report.
For the Pros
Use the following formula to see how much cash you’re buying when you buy a share of stock:
Cash Quarter 10/
(Market Capitalization/ Price Current)