Cash and Equivalents

Cash and Cash Equivalents are the most liquid, non-productive assets on a Company’s Balance Sheet.

Cash and Cash Equivalents are important classifications in the Balance Sheet as it are used in a number of calculations such as Enterprise Value, Net Debt. Cash and Cash Equivalents are Short Term Assets and represent the total value of a Company’s liquid assets. Assets that can be liquified into cash immediately and used to pay down Debt, if necessary. This grouping of assets are non-productive assets and can include, bank accounts and liquid marketable securities.