Cash on Hand + Bank Balances + Short-Term Liquid Investments (≤3 months)
Cash and equivalents are the most liquid assets a company holds.
What it is
Cash & Equivalents is the most liquid asset a company holds: physical cash, bank balances, and very short-term, low-risk investments (typically maturing within three months) such as Treasury bills and money-market funds. It is the first line item among current assets on the balance sheet. It does not include longer-term or marketable securities held for investment.
Why it matters
Cash is what a company uses to pay bills, fund operations, service debt, and weather downturns, so it is a direct read on short-term financial flexibility. A pitfall is assuming all cash is freely usable — some may be held overseas, pledged, or restricted, and a large cash pile can also signal a lack of reinvestment opportunities.
How it's calculated
Add cash and bank balances to short-term, highly liquid investments that are readily convertible to known amounts of cash with insignificant risk of value change (generally maturities of three months or less).
How Quintarthai uses it
Cash & Equivalents appears in the balance sheet on the Financials tab and underpins liquidity ratios on the Ratios tab at /app/.
Cross-border note. Canadian filers report in their functional currency (often CAD) while US filers report in USD, so when comparing cash balances across the border you must convert at the period-end exchange rate.
FAQ
What counts as a cash equivalent?
Highly liquid investments with very short maturities (generally three months or less) and minimal risk of value change, such as Treasury bills and money-market funds.
Is more cash always better?
Not necessarily — ample cash provides safety, but an unusually large balance can indicate the company lacks profitable ways to reinvest it.
Check your understanding
Why can an unusually large Cash & Equivalents balance sometimes be viewed with caution rather than purely as a positive?
While cash provides safety, an unusually large pile can indicate the company has run out of attractive reinvestment opportunities.