cash balance

USAGE SUMMARY

The phrase "cash balance" is correct and commonly used in written English.
It refers to the total amount of money a person or organization has available in cash. Example: "The company's cash balance increased significantly after a successful quarter of sales."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

50 human-written examples

Consider Berkshire's cash balance.

The New York Times

(Its cash balance, however, was $1.2 billion).

The New Yorker

Acct Reversion Code: Must be CA – Revert cash balance.

Cornell University

The price is net of Novacept's cash balance, Cytyc said.

The New York Times

Regardless, any foreseeable cash balance would be exhausted quickly.

The Washington Post

In 1999, amid Congressional hearings and suits on cash balance pensions, the I.R.S. stopped issuing those letters when companies adopted the cash balance design.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

10 human-written examples

Critics say cash-balance plans strip benefits from older workers.

The New York Times

Critics say cash-balance plans hurt older workers.

The New York Times

For them, a cash-balance pension is not a cut — it is a significant improvement.

The New York Times

Employees in cash-balance plans build their benefits at a steadier rate.

The New York Times

About one-third of the nation's largest public companies have cash-balance plans or their equivalent.

The New York Times

Expert writing Tips

Best practice

When discussing a company's financial health, clearly specify the period for which the "cash balance" is reported (e.g., "cash balance" at the end of Q2 2024).

Common error

Don't assume a high "cash balance" automatically indicates profitability. A company can have significant cash reserves while still operating at a loss due to factors like recent investments or seasonal fluctuations.

Linguistic Context

The phrase "cash balance" functions primarily as a noun phrase, referring to the total amount of cash a person or organization holds at a specific time. Ludwig AI confirms its correct usage and it's observable across various examples.

Expression frequency: Very common

Frequent in

News & Media

39%

Formal & Business

30%

Academia

20%

Less common in

Science

10%

Wiki

1%

Encyclopedias

0%

Ludwig's WRAP-UP

In summary, "cash balance" refers to the total amount of readily available funds held by an individual or organization at a specific point in time. Ludwig AI confirms its correct usage. It's a very common term, predominantly used in news, formal business and academic contexts to assess liquidity and financial stability. While a high "cash balance" is generally desirable, it's crucial to consider whether those funds are being utilized effectively for growth and investment. Remember to specify the reporting period when discussing a "cash balance" and avoid confusing it with profitability.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

readily available cash

Emphasizes the immediate usability of the cash.

available funds

Focuses on the accessibility of the money rather than the specific accounting term.

funds on hand

Indicates immediate accessibility of cash.

cash on deposit

Specifies that the cash is held in a bank account.

liquid assets

Highlights the ease with which assets can be converted to cash.

cash reserves

Emphasizes the purpose of the cash being held for future needs.

unrestricted cash

Highlights the availability of cash for any purpose.

net cash position

Includes consideration of liabilities that might offset the cash.

financial resources

Broader term encompassing all available means of funding.

current assets

Relates to the accounting classification of assets expected to be converted to cash within a year.

FAQs

How is "cash balance" used in financial analysis?

In financial analysis, "cash balance" serves as a key indicator of a company's liquidity and short-term solvency, reflecting its ability to meet immediate obligations and fund operations. It's often compared against debt levels and operating expenses to assess overall financial stability.

What's the difference between "cash balance" and cash flow?

"Cash balance" is the amount of cash a company has at a specific point in time, while cash flow represents the movement of cash both into and out of the company over a period. A high cash flow can lead to a healthy "cash balance".

What are some strategies to improve a company's "cash balance"?

Strategies to improve a company's "cash balance" include reducing expenses, increasing sales, improving collection of accounts receivable, and managing inventory more efficiently. Exploring options like "debt refinancing" or securing additional funding can also help.

Is a high "cash balance" always a good thing for a company?

While a healthy "cash balance" is generally positive, an excessively high balance might suggest that the company is not effectively investing its resources for growth. It's important to consider the company's strategic goals and investment opportunities to determine if the "cash balance" is being optimally utilized.