Formula
to calculate defensive interval period:
Defensive
Interval Period = (cash + marketable securities +
accounts receivable) / average daily purchases.
Defensive
interval period definition and explanation:
This
ratio indicates how long a business can operate on its
liquid assets without needing further revenues.
The
defensive interval period reveals near-term liquidity as
a basis to meet expenses.
The defensive interval period ratio is included in
the financial statement ratio analysis spreadsheets
highlighted in the left column, which provide
formulas, definitions, calculation, charts and
explanations of each ratio.
The defensive interval period ratio is listed in our efficiency
ratios.
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
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