Minimum Cash Balance Question
Is the minimum cash balance stated on any of a company’s filings? If not, what are some acceptable ways to estimate a minimum cash balance for a company?
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Prospect in Other, sorry about the lack of response. Maybe one of these topics will help:
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I hope those threads give you a bit more insight.
bump
sometimes it’s a covenant, sometimes you look at average operating expenses and maint capex then apply a % on that. maybe it’s 2 quarters, maybe it’s 4...every cfo is different
so min cash balance is usually not explicitly stated correct? I would usually have to estimate it through one of the ways u mentioned most of the time?
yes
If you are trying to find it specifically: if there is one, it would usually appear in a credit agreement which you can find on BBG/CapIQ/SEC edgar (free). If the company is small enough and you are doing this for your own personal research, this is also a question that IR could probably field if you reach out
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