Cash position

Cash position refers to the total amount of cash and cash equivalents held by a company at a given point in time. It is a critical index of the company's immediate liquidity and indicates its ability to meet financial obligations such as debt payments and operating expenses. A strong cash position provides the company with financial flexibility and reduces its reliance on external sources of financing.

Cash position is a snapshot of the amount of cash a company has at a given moment, with which it indicates liquidity and financial strength. It is used to measure the company's ability to cover immediate expenses and liabilities. Calculated through liquidity ratios such as current and quick ratios, it provides a snapshot assessment of the company's financial position. On the other hand, cash flow represents the net change in cash inflows and outflows during a period.