If you run cash balances
too tight, you risk bouncing payroll checks and impacting employee retention, or even supplier product flows.
The design of cash-balance plans, such as in the case of the Xerox Corporation, may create problems because a low interest rate is used in crediting cash balances
with interest but the same interest is not used when calculating present value of vested termination benefits.
Employees see the value in cash balances
and are apt to appreciate them more than they do the way their employers determine benefits under traditional defined benefit pension plans.
Anders also noted that, with the company more tightly focusing its strategy on core defense businesses, rather than diversification into businesses with which management is unfamiliar, "we anticipate that the strong cash balances
we have been generating will be substantially in excess of our liquidity and core defense investment needs.
Liquidity is adequate and supported by cash balances
With time at a premium for senior financial officers this convenience often wins out over chasing higher-yielding money market funds or rolling 60-day commercial paper, especially for smaller cash balances
Corporations that must undertake significant research and development (R&D) in order to develop commercial products often fund these R&D efforts with significant net operating losses (NOLs) and large cash balances
When Fitch initially rated the electric system in 2004, the electric system was projected to have cash balances
of $6 million and $9 million for 2005 and 2006.
The statement should reconcile beginning and ending cash and cash equivalents, which means cash balances
on the cash flow statement should relate to the amounts reported on the balance sheet.
The 'F1+' rating, Fitch's highest for short-term debt, is based on Bernalillo County's long-term credit strengths, adequate note coverage by broadly pledged revenues, and substantial year-end cash balances
carriers in 2007, positive revenue fundamentals should continue and cash balances
should remain very healthy again next year.
The 'F1+' rating is based on ample coverage of principal and interest from projected cash balances
at the repayment date, along with Richmond's (the city) strong financial management, sound fiscal operations, stable economic base, and improving wealth indicators.