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Window Dressing
Many investors misinterpret cash on the balance sheet. Most
companies try to minimize their interest expense payments by applying all
excess cash to their loans. This keeps interest payments, and cost of funds,
as low as possible. At the end of the quarter, funds are borrowed to show a
positive cash balance to the investors. This is called “window-dressing.”
Next review information on:
Cash Gap
Cash Per Share
Burn Rate |
