Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 2 terms
Cash and bank balances a company cannot use freely — margin money and lien-marked deposits held against guarantees and letters of credit, escrow balances, and amounts earmarked under a statute or a contract.
Broken out in the cash and bank note. Netting it against borrowings, as most screeners do, quietly overstates the company’s position by the whole of it.
Cash held in a group entity from which it cannot readily be moved to where it is needed — because of that entity’s other shareholders, a lender’s consent, a distributable-profits test, or a cross-border tax cost.
Distinct from restricted cash, which is legally encumbered where it sits. Trapped cash is unencumbered and in the wrong company, and consolidation adds the two together without comment.