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Educational Development Corp  (NAS:EDUC) Cash And Cash Equivalents: $0.4 Mil (As of Aug. 2017)

Educational Development Corp's quarterly cash and cash equivalents declined from Feb. 2017 ($0.70 Mil) to May. 2017 ($0.59 Mil) but then stayed the same from May. 2017 ($0.59 Mil) to Aug. 2017 ($0.43 Mil).

Educational Development Corp's annual cash and cash equivalents increased from Feb. 2015 ($0.38 Mil) to Feb. 2016 ($1.18 Mil) but then declined from Feb. 2016 ($1.18 Mil) to Feb. 2017 ($0.70 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.

Educational Development Corp Annual Data

Feb08 Feb09 Feb10 Feb11 Feb12 Feb13 Feb14 Feb15 Feb16 Feb17
Cash And Cash Equivalents Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.47 0.68 0.38 1.18 0.70

Educational Development Corp Quarterly Data

Nov12 Feb13 May13 Aug13 Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17
Cash And Cash Equivalents 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 2.05 0.98 0.70 0.59 0.43

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.


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.


Be Aware

Depreciation estimates make the calculation of net income susceptible to management's accounting choices. These choices can be either overly aggressive or overly conservative.


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