Total Cash per Share (MRQ)

Total cash per share divides a company's total cash and cash equivalents by the number of outstanding shares, showing how much liquid assets back each share. This metric helps investors understand the cash cushion on a per-share basis and can be compared directly to the stock price to assess how much of the share price represents cash versus operating business value.

The calculation:

Total Cash Per Share = Total Cash and Equivalents / Shares Outstanding

For example, if a company holds $10 billion in cash with 2 billion shares outstanding, cash per share is $5.

Why cash per share matters:

• Floor value indicator: In extreme cases, cash per share suggests minimum liquidation value
• Valuation adjustment: Subtract cash per share from stock price to value the operating business
• Buyback capacity: Shows potential for share repurchases
• Dividend coverage: Indicates ability to maintain or increase dividends

Practical applications:

• Enterprise value: Stock price minus cash per share plus debt per share
• Value investing: Stocks trading near cash per share may be undervalued (or have serious problems)
• Growth assessment: High cash per share in growth companies signals investment capacity

Example analysis:

Stock price: $50
Cash per share: $15
Operating business value: $35 per share

Important considerations:

• Cash location: Overseas cash may face repatriation taxes or restrictions
• Restricted cash: Some cash may be legally restricted for specific purposes
• Debt offset: Net cash per share (cash minus debt divided by shares) is often more meaningful
• Burn rate: For unprofitable companies, cash per share depletes over time

Compare cash per share trends over time and against peers. Rapidly declining cash per share in a loss-making company signals potential financing needs, while growing cash per share indicates strong cash generation.