How to check the cash position of a business?

I am an investor and have little knowledge of accounting statements. I usually check the cash position of a company by verifying whether the cash from operations is a positive figure or not. I also check the reserves in Balance sheet. I make sure that cash from financing and investing are not too much positive figures. But as a professional, how do you actually examine the cash status? Where can you check the total cash available in a zero debt business ? Does it reflect in just reserves and surplus? Tell me the professional way.
Replies (1)

The Cash position of the company can be assessed by going through the free cash flow of the company. Loss and profit balance sheet may not provide right picture as the profit of the Company may be blocked in different assets which cannot be easily liquidated hence the best source is to go through the cash flow and find out how much is free cash flow.

 

By study balance sheet of a company. For further details one needs to check and compare with previous 2/3 years balance sheet. Look for sales growth, profit growth, Reserve, debt etc

 

Stock Tips | Currency Tips

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 July 2026
Article/Intern/Semi-Qualified/Fresher B.Com

VNSS & Co

Mumbai

Others

View Details
Company
06 July 2026
Senior Accountant

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
Featured 16 July 2026
CA Inter, CA Intermediate, CA IPCC, CA CPT, CA SemiQualified

Vakilsearch.com

Chennai

CA Inter

View Details
Company
Featured 18 July 2026
Senior Manager- Finance & Accounts

apricus india

Ahmedabad

CA

View Details
Company
13 July 2026
AVP / VP - PCG Advisory

Workforce Connect

Mumbai

MBA

View Details
Company
29 July 2026
ACCOUNTANT

ONESTEP GST SOLUTION

New Delhi

B.Com

View Details
Company
14 July 2026
Senior Executive/ Manager

H S SHARMA AND CO

Pune

CA Final

View Details
Company
23 July 2026
CA Inter

Vikram Jadhav and Company

Pune

CA Inter

View Details