What maturity period defines cash equivalents for Ledgers?

According to Ledgers' 2025 Franchise Disclosure Document, the company considers financial instruments with a maturity of three months or less as cash equivalents. This definition is relevant when assessing Ledgers' financial health, as it determines what assets are readily available to meet short-term obligations.

For a prospective Ledgers franchisee, understanding this definition is important for interpreting the company's balance sheets and cash flow statements. When reviewing Ledgers' financial statements, a franchisee can see how much cash and cash equivalents Ledgers holds, which provides insight into the company's liquidity and ability to meet its immediate financial obligations. This can be a factor in assessing the financial stability of Ledgers.

This accounting practice is standard, as most companies consider instruments with short-term maturities (typically three months or less) as cash equivalents due to their high liquidity. This information is found within the notes to the financial statements, specifically under significant accounting policies.