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GuruFocus has detected 3 Warning Signs with Thermon Group Holdings Inc $THR.
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Thermon Group Holdings Inc (NYSE:THR)
Cash, Cash Equivalents, Marketable Securities
USD 79.0 Mil (As of Dec. 2016)

Thermon Group Holdings Inc's quarterly cash, cash equivalents, marketable securities increased from Jun. 2016 (USD 72.56 Mil) to Sep. 2016 (USD 76.57 Mil) and increased from Sep. 2016 (USD 76.57 Mil) to Dec. 2016 (USD 78.99 Mil).

Thermon Group Holdings Inc's annual cash, cash equivalents, marketable securities increased from Mar. 2014 (USD 72.64 Mil) to Mar. 2015 (USD 93.77 Mil) but then declined from Mar. 2015 (USD 93.77 Mil) to Mar. 2016 (USD 84.57 Mil).


Definition

Cash and cash equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash, such as money market holdings, short-term government bonds or Treasury bills, marketable securities and commercial paper.

Marketable Securities are very liquid securities that can be converted into cash quickly at a reasonable price.


Explanation

Marketable securities are very liquid as they tend to have maturities of less than one year. Furthermore, the rate at which these securities can be bought or sold has little effect on their prices.

A high number means either:

1) The company has competitive advantage generating lots of cash

2) Just sold a business or bonds (not necessarily good)

A low stockpile of cash usually means poor to mediocre economics.

There are 3 ways to create large cash reserve.

1) Sell new bonds or equity to public

2) Sell business or asset

3) It has an ongoing business generating more cash than it burns (usually means durable competitive advantage)

When a company is suffering a short term problem, Buffett looks at cash or marketable securities to see whether it has the financial strength to ride it out.

Important: Lots of cash and marketable securities + little debt = good chance that the business will sail on through tough times.

Test to see what is creating cash by looking at past 7 yrs of balance sheets. This will reveal how the cash was created.


Related Terms

Cash and Cash Equivalents, Marketable Securities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Thermon Group Holdings Inc Annual Data

Mar09Mar10Mar12Mar13Mar14Mar15Mar16
Cash, Cash Equivalents,
Marketable Securities
0.00.00.013.430.121.543.872.693.884.6

Thermon Group Holdings Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
Cash, Cash Equivalents,
Marketable Securities
82.190.393.879.461.779.184.672.676.679.0
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