Pronunciation: [ɛksˈɛs kˈaʃ] (IPA) 
The spelling of the phrase "excess cash" is relatively straightforward. "Excess" is spelled with the letter "x" and pronounced /ɪkˈsɛs/, while "cash" is spelled with the letters "c-a-s-h" and pronounced /kæʃ/. When combined, the phrase is pronounced /ɪkˈsɛs kæʃ/. It refers to a surplus of cash that an individual or organization possesses beyond what is needed for daily operations or expenditures.
Excess cash refers to the surplus funds that an individual, company, or organization possesses beyond its immediate operational and financial needs. It is the amount of cash available after fulfilling regular obligations like paying bills, meeting expenses, and honoring financial commitments.
Excess cash is a critical financial indicator as it signifies the liquidity position of an entity. It can be the result of various factors such as efficient cash flow management, successful business operations, higher revenues, or lower expenses. This surplus cash can accumulate over time and be utilized for various purposes, including investment, debt repayment, expansion, acquisitions, dividend distribution, or simply maintaining a strong cash reserve for unforeseen events.
For individuals, excess cash can be in the form of savings or investments beyond regular expenses and emergency funds. It allows for financial flexibility and the ability to pursue goals like buying a house, funding education, or planning for retirement.
In a corporate context, companies often distribute excess cash to shareholders through dividends, repurchasing shares, or undertaking capital expenditures. It can also be used to reduce debt burdens or invest in other ventures to generate higher returns.
Having excess cash is advantageous as it provides a buffer against financial emergencies and opportunities for growth. However, it is essential to manage excess cash effectively to maximize its potential and prevent it from becoming a liability by investing it prudently and maintaining a balance between liquidity and profitability.
The word "excess" originated from the Latin word "excessus", which means "a going out, an abounding, or a surpassing". The word "cash" is derived from the Middle French word "caisse", meaning "money box" or "case". In combination, "excess cash" refers to the surplus amount of cash or money that surpasses the necessary or expected amount.
