Cash per share
factor.formula
Calculation formula:
Cash per share:
The formula is designed to calculate the amount of cash equivalent to each share of common stock.
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Refers to the total amount of monetary funds listed on the company's balance sheet at the end of the most recent financial reporting period. This value represents the company's cash and cash equivalents that can be used for payments and investments at any time. It is a key indicator for evaluating a company's liquidity and short-term debt repayment ability.
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Refers to the total number of common shares issued by a company at the end of the most recent financial reporting period. It is the basis for calculating per-share indicators and is directly related to the share of equity or assets represented by each share.
factor.explanation
This indicator reflects the cash and cash equivalents corresponding to each share of the company. Generally, higher cash per share means that the company has stronger short-term debt repayment ability and financial flexibility. However, it should be noted that simply high cash per share does not mean that the company has strong profitability. It also needs to be combined with other financial indicators for comprehensive analysis. In addition, due to differences in business models, the reasonable level of cash per share of companies in different industries will also be different. Therefore, when comparing different companies, the industry background should be considered.