The value of assets that can be converted into cash immediately.

Cash & Short Term Investments = Cash & Equivalent + Short Term Investments.

Cash & Short Term Investments represent the total negotiable medium of exchange or instruments normally accepted by banks for deposit and immediate credit to customer accounts : bank accounts and marketable securities, such as government bonds and bankers acceptances.
Short term investments comprise of all investments (quoted and unquoted) that can be made on short notice.

The level of Cash & Short Term Investments depends on 2 major factors:

	- the type of business : for example, some industries typically face large working capital needs, which reduce the amount of cash available.
	- the financial policy guidelines of the company : large amounts of cash available give financial flexibility but reduce the return on assets performance, which is a key indicator for the shareholders.