Days cash on hand

This measure calculates the number of days that an organization can continue to pay its operating expenses, given the amount of cash available, without any new revenue. This measure is part of a set of Process Efficiency measures that help companies optimize their "manage financial resources" processes by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
106503
Total Sample Size:
3,063 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
Yes

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are days.

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Days cash on hand

Key Terms

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Days cash on hand

Days cash on hand is the number of days that an organization can continue to pay its operating expenses, given the amount of cash available, without any new revenue.

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.3.1)

  • 9.2.1 - Process customer credit (10742)
    • 9.2.1.1 - Establish credit policies (10789)
    • 9.2.1.2 - Analyze/Approve new account applications (10790)
    • 9.2.1.3 - Analyze credit scoring history (14187)
    • 9.2.1.4 - Forecast credit scoring requirement (14188)
    • 9.2.1.5 - Review existing accounts (10791)
    • 9.2.1.6 - Produce credit/collection reports (10792)
    • 9.2.1.7 - Reinstate or suspend accounts based on credit policies (10793)
  • 9.2.2 - Invoice customer (10743)
    • 9.2.2.1 - Maintain customer/product master files (10794)
    • 9.2.2.2 - Generate customer billing data (10795)
    • 9.2.2.3 - Transmit billing data to customers (10796)
    • 9.2.2.4 - Post receivable entries (10797)
    • 9.2.2.5 - Resolve customer billing inquiries (10798)
  • 9.2.3 - Process accounts receivable (AR) (10744)
    • 9.2.3.1 - Establish AR policies (10799)
    • 9.2.3.2 - Receive/Deposit customer payments (10800)
    • 9.2.3.3 - Apply cash remittances (10801)
    • 9.2.3.4 - Prepare AR reports (10802)
    • 9.2.3.5 - Post AR activity to the general ledger (10803)
  • 9.2.4 - Manage and process collections (10745)
    • 9.2.4.1 - Establish policies for delinquent accounts (10804)
    • 9.2.4.2 - Analyze delinquent account balances (10805)
    • 9.2.4.3 - Correspond/Negotiate with delinquent accounts (10806)
    • 9.2.4.4 - Discuss account resolution with internal parties (10807)
    • 9.2.4.5 - Process adjustments/write off balances (10808)
    • 9.2.4.6 - Perform recovery workout (14007)
    • 9.2.4.7 - Manage default accounts (14008)
  • 9.2.5 - Manage and process adjustments/deductions (10746)
    • 9.2.5.1 - Establish policies/procedures for adjustments (10809)
    • 9.2.5.2 - Analyze adjustments (10810)
    • 9.2.5.3 - Correspond/Negotiate with customer (10811)
    • 9.2.5.4 - Discuss resolution with internal parties (10812)
    • 9.2.5.5 - Prepare chargeback invoices (10813)
    • 9.2.5.6 - Process related entries (10814)