Days Cash on Hand Ratio Calculator
Expert Guide to Days Cash on Hand Ratio
Introduction & Importance
Days Cash on Hand (DCOH) ratio is a liquidity metric that measures how many days a company can survive without generating revenue…
How to Use This Calculator
- Enter your company’s cash on hand.
- Enter your company’s annual sales.
- Click ‘Calculate’.
Formula & Methodology
The formula for DCOH is: Cash on Hand / (Annual Sales / 365)…
Real-World Examples
Let’s consider three companies…
Data & Statistics
| Company | DCOH Ratio |
|---|---|
| Apple | 15.6 |
| Microsoft | 12.3 |
Expert Tips
- Keep your DCOH ratio above 90 to ensure liquidity.
- Regularly review and adjust your DCOH ratio.
Interactive FAQ
What is a good DCOH ratio?
A good DCOH ratio is above 90 days.
How can I improve my DCOH ratio?
Increase cash on hand or decrease annual sales.
SEC filings can provide detailed financial data.
Census Bureau data can help estimate sales.