Annual Report 2023

Annual Report 2023

11. Cash and Cash Equivalents

 

 

At December 31,

(in thousands of $)

 

2023

 

2022

 

2021

Money market funds

 

1,678,100

 

669,147

 

997,092

Term accounts

 

350,000

 

54,116

 

95,090

Cash and bank balances

 

20,744

 

77,477

 

242,494

Total cash and cash equivalents

 

2,048,844

 

800,740

 

1,334,676

Cash and cash equivalents may comprise of cash and bank balances, saving accounts, term accounts with an original maturity not exceeding 3 months and money market funds that are readily convertible to cash and are subject to an insignificant risk of changes in value.

Cash positions are invested with preferred financial partners, which are mostly considered to be high quality financial institutions with sound credit ratings to reduce credit risk.

On December 31, 2023, the cash and cash equivalents included $702.8 million (€636.0 million) held in EUR, and $8.2 million (¥1,164.6 million) held in JPY which could generate a foreign currency exchange gain or loss in the financial results in accordance with the fluctuations of the USD/EUR and USD/JPY exchange rates as the Company’s functional currency is USD.

Please also refer to Note 26 for more information on the financial risk management.