Days Cash on Hand

Published On:
September 16, 2019
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Days cash on hand measures the number of days that an organization can continue paying its operating expenses with the amount of cash currently available. If sales revenue suddenly dried up or an unexpected catastrophe interrupted the business, organizations with more cash on hand will be able to keep the business running longer without incurring additional debt or having to raise additional funds. This liquidity metric is a valuable one for any CFO, especially those in a moderate-to-high expense environment.

This article focuses on the "days cash on hand" measure, as reported in APQC's Open Standards Benchmarking Order to Cash Survey.