Excess Cash is an imprecise terminology and has various meanings for different companies and under different circumstances. The term broadly connotes the amount of cash over and above what a business requires to fulfil its daily operational cash requirements beyond what the company needs to perform its daily operations. Thus, excess cash occurs only when the total cash of the business is larger than total current liabilities. The formula for calculating excess cash is: Excess Cash = Total Cash – MAX (Total Current Liabilities – Total Current Non-Cash Assets)  Where: Total Cash = Cash and cash equivalents + short term investments Total Current Non-Cash Assets = Total Current Assets - Total cash  Most growing businesses have high working capital needs and as a result require more cash to fund growth. In consideration of the extra cash requirements of businesses to fund high working capital needs, adequate provision is made in determining the benefits streams to rely on in estimating the fair market value of businesses.