The
defensive-interval ratio is a measurement of
how long a company can operate using only current
liquid assets. This ratio is considered a measurement
of the firm's defensive or quick assets compared
to daily expenditures.
To calculate
the defensive-interval ratio:
Defensive-interval
ratio = Current liquid assets (quick assets)
/ Projected daily operational expenditures
The
defensive interval ratio is expressed in days.
Historical and current end-of-day data provided by Interactive Data Corp. and subject to terms of use. Fundamental data supplier: Mergent
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