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Pier 1 Imports Inc  (NYSE:PIR) Cash, Cash Equivalents, Marketable Securities: $35 Mil (As of Aug. 2017)

Pier 1 Imports Inc's quarterly cash, cash equivalents, marketable securities increased from Feb. 2017 ($154.46 Mil) to May. 2017 ($161.63 Mil) but then stayed the same from May. 2017 ($161.63 Mil) to Aug. 2017 ($34.95 Mil).

Pier 1 Imports Inc's annual cash, cash equivalents, marketable securities increased from Feb. 2015 ($100.06 Mil) to Feb. 2016 ($115.22 Mil) and increased from Feb. 2016 ($115.22 Mil) to Feb. 2017 ($154.46 Mil).


Historical Data

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

* Premium members only.

Pier 1 Imports Inc Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Cash, Cash Equivalents, Marketable Securities Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 231.56 126.70 100.06 115.22 154.46

Pier 1 Imports Inc Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
Cash, Cash Equivalents, Marketable Securities Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 38.34 86.21 154.46 161.63 34.95

Calculation

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.


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