What is TRW Automotive Holdings Cash, Cash Equivalents, Marketable Securities?
TRW Automotive Holdings's quarterly cash, cash equivalents, marketable securities
increased
from Sep. 2014 (€632.44 Mil) to Dec. 2014 (€836.14 Mil) and
increased
from Dec. 2014 (€836.14 Mil) to Mar. 2015 (€939.71 Mil).
TRW Automotive Holdings's annual cash, cash equivalents, marketable securities
increased
from Dec. 2012 (€931.93 Mil) to Dec. 2013 (€1,262.17 Mil) but then
declined
from Dec. 2013 (€1,262.17 Mil) to Dec. 2014 (€836.14 Mil).
TRW Automotive Holdings Cash, Cash Equivalents, Marketable Securities Historical Data
The historical data trend for TRW Automotive Holdings's Cash, Cash Equivalents, Marketable Securities can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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.
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.
TRW Automotive Holdings Cash, Cash Equivalents, Marketable Securities Related Terms
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TRW Automotive Holdings (FRA:TQT) Business Description
TRW Automotive Holdings Corp is a Delaware corporation formed in 2002. The Company is a supplier of automotive systems, modules and components to automotive original equipment manufacturers and related aftermarkets. It conducts substantially all of its operations through subsidiaries. These operations encompass the design, manufacture and sale of active and passive safety related products and systems. Active safety related products and systems principally refer to vehicle dynamic controls (braking and steering) and electronics (driver assistance systems), and passive safety related products and systems principally refer to occupant restraints (airbags and seat belts) and electronics (airbag electronic control units, and crash and occupant weight sensors). It operates its business in four segments: Chassis Systems, Occupant Safety Systems, Electronics and Automotive Components. The Chassis Systems segment focuses on the design, manufacture and sale of products and systems relating to braking, steering, modules, and linkage and suspension. It sells its Chassis Systems products and systems to OEMs and other Tier 1 suppliers. The Occupant Safety Systems segment focuses on the design, manufacture and sale of products and systems relating to airbags, seat belts, and steering wheels. It sells its Occupant Safety Systems products and systems to OEMs and other Tier 1 suppliers. It also sells these products and systems to OEM service organizations. The Electronics segment focuses on the design, manufacture and sale of electronics components and systems in the areas of safety, chassis, radio frequency, powertrain, and driver assistance systems, including cameras and radars. It sells its Electronics products and systems to OEMs and to its Chassis Systems segment (braking and steering applications). It also sells these products and systems to OEM service organizations. The Automotive Components segment focuses on the design, manufacture and sale of body controls, engine valves, and engineered fasteners and components. It sells its Automotive Components products to OEMs and other Tier 1 suppliers, and to certain non-automotive markets and customers. It also sells these products to OEM service organizations. In addition, it sells some engine valve and body control products to independent distributors for the automotive aftermarket. The Company's principal competitors include Advics, Bosch, Continental, JTEKT, Nexteer and ZF in the Chassis Systems segment; Autoliv, Key Safety, and Takata in the Occupant Safety Systems segment; Autoliv, Bosch, Continental, Delphi, Denso, and Magna in the Electronics segment; and Delphi, Eaton, ITW, Kostal, Nifco, Raymond, Tokai Rika, and Valeo in the Automotive Components segment. Its operations are subject to a variety of federal, state, local and international laws and regulations which may have a direct or indirect effect on its business.
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