excess cash

USAGE SUMMARY

"excess cash" is correct and usable in written English.
You can use it when you want to refer to money that someone has on hand beyond what they need for immediate use. For example: "Through careful budgeting, the family was able to save up excess cash for a much-needed vacation."

✓ Grammatically correct

News & Media

Science

Encyclopedias

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

56 human-written examples

It still provides excess cash.

The Guardian - Sport

The state government will be rolling in excess cash.

The Guardian - Opinion

Excess cash is often parked abroad rather than lent locally.

The Economist

All five of today's stars have lots of excess cash.

The Economist

Reckitt has £3bn-£4bn of excess cash to spend each year.

The Guardian - Business

She looks for niche leaders with profitable businesses that generate excess cash flow but are undervalued.

The New York Times

Returning excess cash from operations to shareholders should increase a stock price.

The New York Times

The company generates about $500 million in excess cash every year, Mr. Buppert said.

The New York Times

"Lukoil has excess cash flows that they need to use somehow".

The New York Times

He analyzes a company's balance sheet, looking primarily for minimal debt and excess cash flow.

The New York Times

The northern banks deposit their excess cash there rather than lend in the interbank market.

The Economist

Expert writing Tips

Best practice

When discussing a company's financial health, be specific about what "excess cash" will be used for (e.g., debt reduction, acquisitions, stock buybacks).

Common error

Don't use "excess cash" interchangeably with "cash flow". "Excess cash" refers to the amount of cash on hand, while "cash flow" refers to the movement of cash in and out of a business over a period of time.

Linguistic Context

The phrase "excess cash" functions primarily as a noun phrase, often serving as the subject or object of a sentence. It identifies a specific type of asset, referring to the amount of cash a company or entity holds beyond what is needed for immediate operational expenses.

Expression frequency: Very common

Frequent in

News & Media

46%

Science

24%

Formal & Business

14%

Less common in

Encyclopedias

8%

Science

4%

News & Media

4%

Ludwig's WRAP-UP

In summary, "excess cash" is a common noun phrase used to describe a financial situation where an entity has more cash on hand than immediately needed. Ludwig AI confirms its correctness and usability in written English. It is most frequently encountered in news and media, science, and formal business contexts. When writing about "excess cash", it's important to be specific about its intended use and avoid confusion with related terms like "cash flow". Related phrases include "spare cash" and "surplus cash". Its consistent usage and clear definition make it a valuable term in financial discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

spare cash

This alternative suggests readily available funds that are not currently needed.

surplus cash

This alternative emphasizes that the amount of cash is more than what is required.

excess money

This is a more general term that can be used interchangeably with "excess cash".

cash surplus

This alternative phrase has the same meaning but with a different word order.

free cash flow

This term specifically refers to the cash a company generates after accounting for capital expenditures.

available funds

This is a broader term referring to accessible money that may or may not be in excess.

liquid assets

This refers to assets that can be easily converted into cash.

idle cash

Implies the cash is not being used or invested.

uninvested capital

Highlights that the cash is available for investment purposes.

retained earnings

This term refers to the portion of a company's profit that is kept as cash.

FAQs

How is "excess cash" typically used by companies?

Companies often use "excess cash" for various purposes, including "debt reduction", "stock buybacks", "acquisitions", research and development, or "capital expenditures".

What are the benefits of a company having "excess cash"?

Having "excess cash" can provide companies with financial flexibility, allowing them to weather economic downturns, invest in growth opportunities, and return value to shareholders.

What are the potential downsides of holding too much "excess cash"?

Holding too much "excess cash" can lead to missed investment opportunities, reduced returns on assets, and increased scrutiny from investors who may prefer the cash to be deployed more actively.

What's the difference between "excess cash" and "working capital"?

"Excess cash" is cash on hand beyond immediate operational needs, while "working capital" is the difference between a company's current assets and current liabilities, indicating its short-term financial health.