An additional amount of cash beyond what a company normally needs to have on hand. As a general guideline, a company is often said to have excess cash if its cash on hand equals more than 20% of its revenue.
Related information about excess cash:
- Excess Cash Flow Definition | Investopedia
The excess cash flow may be passed to investors who purchased a residual interest in the securities or used by the bond issuer to pay out to bond holders.
- What is excess cash? definition and meaning
Definition of excess cash: An additional amount of cash beyond what a company normally needs to have on hand. As a general guideline, a company is often ...
- Excess Cash Definition & Application Wiki - WikiWealth
Educate yourself with the real world application and definition of Excess Cash. Profit from our financial dictionary wiki.
- How To Use Excess Cash In Stock Analysis - Seeking Alpha
Oct 9, 2012 ... One of the most common questions asked on those figures is the calculation of " excess cash." In this article, I'll try to explain what exactly ...
- Excess Cash Explained - Rarely a Good Thing
Excess cash management can harm the company's performance in many ways. It's not just having too little cash, it is also having too much.
- How to Calculate Excess Cash on the Cash Flow Statement ...
Excess Cash (deficiency) is calculated by subtracting the cash outflows from the cash inflows. If a positive figure results, then the company is considered to have ...
- Why businesses have excess cash and what they should do with it ...
Jul 8, 2011 ... The value of a business does not take excess cash into consideration, as it does not impact the cash flow; excess cash is a cushion that can ...
- PLC - Excess Cash Flow
Refers to a financial measurement used in the loan agreement which activates the requirement for mandatory prepayments of the loan. Excess cash flow ...