Target Cash Balance

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Dictionary Says

Definition of 'Target Cash Balance'

The ideal amount of cash that a company wishes to hold in reserve at any given point in time. This figure hopes to strike a balance between the investment opportunity costs of holding too much cash and the balance sheet costs of holding too little. Companies with excess cash on hand may be missing out on investment opportunities, while companies that are cash poor can often be forced to make otherwise undesirable transactions to free up more operating capital.
Investopedia Says

Investopedia explains 'Target Cash Balance'

It is wise for individual investors to set their own target cash balance as well. Through portfolio management and clearly defined financial goals, investors can at least approximate what percentage of their holdings should be in cash to avoid the pitfalls listed above.

Search results for

'Target Cash Balance'

  • Wal-Mart Outmuscles Target

    http://stocks.investopedia.com/stock-analysis/2010/Wal-Mart-Outmuscles-Target-TGT-WMT-SHLD-M-DDS0126.aspx
    ... Wal-Mart and Target also remained firmly profitable during ... store concepts fresh and
    efficiently utilize their cash. ... the CFS relates to the balance sheet and ...

  • CFA Level 1 Study Guide - Corporate Finance - Target Capital ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/target-capital-structure.asp
    ... 11.7 Target Capital Structure; 11.8 Marginal Cost of Capital; 11.9 ... Trade Process;
    15.24 Computing the Margin Balance for a ... 15.35 Effect of Cash Flows on Put-Call ...

  • In M&A how does an all-stock or all-cash deal affect the equity of ...

    http://www.investopedia.com/ask/answers/06/macashstockequity.asp
    ... way, the purchasing company can acquire the target company by ... purchases a smaller
    company with all cash, there is ... portion of the parent company's balance sheet ...

  • Pinpoint Takeovers First

    http://www.investopedia.com/articles/stocks/07/takeover_stocks.asp
    ... Acquirers are most interested in the target's free cash flow (FCF). ... Look for companies
    with little long-term debt and plenty of cash on the balance sheet. ...

  • Spotting Cash Cows

    http://www.investopedia.com/articles/stocks/05/cashcow.asp
    ... a cash cow can often be a tempting takeover target. ... 2004 Consolidated Statement of
    Earnings and Balance Sheets, you ... a good job of reinvesting its free cash flow ...

  • Smart Balance's Healthy Returns

    http://stocks.investopedia.com/stock-analysis/2011/Smart-Balances-Healthy-Returns-SMBL-WMT-TGT-WFM-KR-HAIN-HNZ-KFT-CAG1027.aspx
    ... Smart Balance already has good working relationships with Wal-Mart ... Takeover Target
    On October 25, Hain Celestial Group (Nasdaq ... Group in a $230 million cash deal ...

  • This Week's Activist Filings

    http://stocks.investopedia.com/stock-analysis/2010/This-Weeks-Activist-Filings-SRLS-GBL-EPHC-ADPT1013.aspx
    ... $4 with a market cap of under $80 million and nearly $12 million in net cash on
    the balance sheet. ... For more, see Could Your Company Be A Target For Activist ...

  • Using Porter's 5 Forces To Analyze Stocks

    http://www.investopedia.com/articles/fundamental-analysis/11/using-Porters-5-forces-for-stock-analysis.asp
    ... consistently fails to demonstrate an appreciating cash balance, may be ... positions,
    check out Reading The Balance Sheet.). ... to adapt to changes in its target market ...

  • CFA Level 1 Study Guide - Financial Statements - Balance Sheet ...

    http://www.investopedia.com/exam-guide/cfa-level-1/financial-statements/balance-sheet-components-assets.asp
    ... 11.7 Target Capital Structure; 11.8 Marginal Cost of Capital; 11.9 ... Trade Process;
    15.24 Computing the Margin Balance for a ... 15.35 Effect of Cash Flows on Put-Call ...

  • Taking Stock Of Discounted Cash Flow

    http://www.investopedia.com/articles/03/011403.asp
    ... growth in operating earnings, capital efficiency, balance sheet capital ... a stock solely
    on discounted cash flow analysis ... It is a moving target, full of challenges ...

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