Riviera Tool Co (Riviera Tool Co) Cash, Cash Equivalents, Marketable Securities : $0.51 Mil (As of Nov. 2006)

Riviera Tool Co Cash, Cash Equivalents, Marketable Securities Chart

Riviera Tool Co Annual Data
	Trend	Aug97	Aug98	Aug99	Aug00	Aug01	Aug02	Aug03	Aug04	Aug05	Aug06
Cash, Cash Equivalents, Marketable Securities		Get a 7-Day Free Trial					2.34	-	-	0.24	0.16

Riviera Tool Co Quarterly Data
	Feb02	May02	Aug02	Nov02	Feb03	May03	Aug03	Nov03	Feb04	May04	Aug04	Nov04	Feb05	May05	Aug05	Nov05	Feb06	May06	Aug06	Nov06
Cash, Cash Equivalents, Marketable Securities	Get a 7-Day Free Trial															0.28	0.39	0.02	0.16	0.51

Riviera Tool Co Cash, Cash Equivalents, Marketable Securities 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.

Riviera Tool Co  (OTCPK:RIVT) Cash, Cash Equivalents, Marketable Securities 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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Riviera Tool Co (Riviera Tool Co) Business Description