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Dollar Tree Stores Inc (NAS:DLTR)
Cash and Cash Equivalents
$468 Mil (As of Jul. 2014)

Dollar Tree Stores Inc's quarterly cash and cash equivalents increased from Jan. 2014 ($267.70 Mil) to Apr. 2014 ($387.10 Mil) and increased from Apr. 2014 ($387.10 Mil) to Jul. 2014 ($467.70 Mil).

Dollar Tree Stores Inc's annual cash and cash equivalents increased from Jan. 2012 ($288.30 Mil) to Jan. 2013 ($399.90 Mil) but then declined from Jan. 2013 ($399.90 Mil) to Jan. 2014 ($267.70 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.


Explanation

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.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dollar Tree Stores Inc Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
CashAndCashEquivalents 107668541364572311288400268

Dollar Tree Stores Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
CashAndCashEquivalents 382380222400383414147268387468
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