Cash at end of period
Also known as: closing cash balance, ending cash balance
Cash at end of period is the closing cash and cash equivalents balance at the reporting date. It must reconcile exactly to the line on the , the mechanical link that confirms the internal consistency of the three financial statements. The formula is:
+ It's the final line of the and the one figure that directly connects the to the , completing the articulation of the financial statements alongside how flows from the into .
The closing cash balance is the starting point for analysis. In isolation it reveals the absolute level of immediately accessible funds a company holds at the reporting date, but its analytical value is greatly enhanced by reading it relative to the company's monthly cash burn rate, near term debt maturities, undrawn credit facility availability, and seasonal cash flow patterns. A comfortable-looking balance at a quarter end can mask a business that regularly draws its to near zero mid-period before receiving large customer payments, while a seemingly thin balance at a company with strong and predictable operating cash inflows in the following weeks represents far less risk than the headline figure suggests.
For companies operating across multiple currencies, the closing cash balance reflects the retranslated value of all cash holdings at the period end exchange rate, so movements between periods can reflect currency translation effects as well as genuine cash generation or consumption. Separating the two requires reference to the foreign exchange adjustment line presented between the financing section and the closing balance.