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Balance sheet & cash flow

Total cash

Beginner

Total cash is money in bank accounts plus quickly-liquidatable investments (e.g. money-market funds). A large cash pile acts like an airbag: it allows investing in downturns, buying back shares or acquisitions, and avoids being forced to take on debt. Subtracting debt gives 'net cash' — an often-overlooked valuation factor.

Related terms

For educational and informational purposes — not investment advice.