List Three Factors That Affect a Company's Desired Minimum Cash

question 49

Essay

List three factors that affect a company's desired minimum cash balance.

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Definitions:

Maturing Debt

Debt that is due for repayment within the next fiscal year or operating cycle, whichever is longer.

Earnings per Share

A financial metric that calculates the portion of a company’s profit allocated to each outstanding share of common stock, indicating company profitability.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earnings from investment in stocks as a percentage.

Acid-test Ratio

A liquidity measurement that evaluates whether a company can pay its short-term obligations using its most liquid assets, typically excluding inventory.