Cash is king

Cash is king

Cash is king is a cliched expression sometimes used in analyzing businesses; it refers to the importance of cash flow in the overall fiscal health of the business. The phrase is a favorite of Alex Spanos and has sometimes appeared in Motley Fool articles and commentaries. It describes the importance of sufficient cash as an asset in the business for short term operations, purchases and acquisitions. A company could have a large amount of accounts receivables on its balance sheet which would also increase equity, but the company could still be short on cash with which to make purchases, including paying wages to workers for labor. Unless it was able to convert its accounts receivable and other current assets to cash quickly, it could be technically bankrupt despite a positive net worth.

External links

* [http://www.fool.com/news/foth/2000/foth001121.htm Fool on the Hill — Cash is King] - Motley Fool opinion article stressing the importance of examining cash flow statements.
* [http://www.ameinfo.com/66656.html Cash is king in a recession!]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем сделать НИР

Look at other dictionaries:

  • Cash is king. — sent. It is best to keep one’s investment money in cash. (Said when the prices in the securities market are too high. It is better to build up cash and wait for a break in the market.) □ Things look a little pricy now. I’d say that cash is king… …   Dictionary of American slang and colloquial expressions

  • king — [kɪŋ] noun 1. [uncountable] if something is king, it is the most important thing and has a strong influence on people s decisions: • We were convinced of the superiority of our product, but ultimately the customer is king and it was rejected. •… …   Financial and business terms

  • Cash-Flow-Steuer —   [ kæʃ fləʊ ], Unternehmensbesteuerung, bei der sich die Steuer nicht nach dem Gewinn, sondern nach der Differenz zwischen Zahlungseingängen und (laufenden und Investitions )Ausgaben bemisst. In der (erstmals 1948 von E. C. Brown beschriebenen… …   Universal-Lexikon

  • King Features Syndicate — King Features 1951 Christmas card King Features Syndicate, a print syndication company owned by The Hearst Corporation, distributes about 150 comic strips, newspaper columns, editorial cartoons, puzzles and games to nearly 5000 newspapers… …   Wikipedia

  • King Fahd International Airport — Dammam Airport مطار الملك فهد الدولي …   Wikipedia

  • King's Stanley — is a village in Gloucestershire, England, situated southwest of the town of Stroud. The village is part of what is known locally as The Stanleys , along with its neighbours Leonard Stanley and Stanley Downton. Marling Close, which contains the… …   Wikipedia

  • King Cotton — was a phrase used in the Southern United States mainly by Southern politicians and authors who wanted to illustrate the importance of the cotton crop to the Confederate economy during the American Civil War. [citebook|title=A Financial History of …   Wikipedia

  • King Edward Street Chapel, Macclesfield — is in the town of Macclesfield, Cheshire, England. It is a Grade II* listed building.cite web |url=http://www.imagesofengland.org.uk/search/details.aspx?pid=1 id=391021 |title=Images of England: Unitarian Chapel, Macclesfield |accessdate=2007 10… …   Wikipedia

  • King's Record Shop — Infobox Album | Name = King s Record Shop Type = Album Artist = Rosanne Cash Released = 1987 Recorded = Genre = Country Length = 52:12 Label = Columbia Producer = Rodney Crowell Reviews = *Allmusic:Rating|4.5|5… …   Wikipedia

  • King Neptune (pig) — Infobox Military Person name=Parker Neptune caption=Memorial dedicated to the king at a rest stop near Anna, Illinois. born=May 16 1942 died=death date and age|1950|5|14|1942|5|16|df=y placeofbirth=West Frankfort, Illinois placeofdeath=Anna,… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”