Cash and debt
Cash
The money a company has on hand: cash in the bank, cash equivalents, and short-term investments it can turn into cash quickly.
Why does it matter?
It is the company's cushion for paying bills, investing, and handling surprises without needing to borrow.
How do I read it?
Read it together with debt and free cash flow. A large amount of cash can give a company flexibility, or it can mean the company hasn't found a use for its money yet; the number alone doesn't say which.
How StockLab calculates it
Cash, cash equivalents and short-term investments, from the latest balance sheet.
Example
A company with $5 billion in the bank and $3 billion in short-term government bonds has about $8 billion of cash and short-term investments.
On StockLab
It is part of the Cash vs. Debt card on every company page.