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Mettler-Toledo International Inc (NYSE:MTD)
Cash and Cash Equivalents
$126 Mil (As of Sep. 2014)

Mettler-Toledo International Inc's quarterly cash and cash equivalents declined from Mar. 2014 ($115.80 Mil) to Jun. 2014 ($111.01 Mil) but then increased from Jun. 2014 ($111.01 Mil) to Sep. 2014 ($126.31 Mil).

Mettler-Toledo International Inc's annual cash and cash equivalents declined from Dec. 2011 ($235.60 Mil) to Dec. 2012 ($101.70 Mil) but then increased from Dec. 2012 ($101.70 Mil) to Dec. 2013 ($111.87 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.

Mettler-Toledo International Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
CashAndCashEquivalents 67325151817885448236102112

Mettler-Toledo International Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
CashAndCashEquivalents 1351051029312092112116111126
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