Our Financial Analysis Success Kit is Ready!

Click to take a closer look at the Financial Analysis Success Kit Click the button to learn more about the Financial Analysis Success Kit Click the button to learn more about the financial analysis success it

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:
  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS...Our eBook of "Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Take a Look

Quick Definition

An estimation of the number of day a company can cover its operations with its most liquid assets.

There's More to Financial Analysis Than You Think...

The Financial Analysis Success Kit can help!

Why you should take a look at the Financial Analysis Success Kit:

We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

  1. The eBook "Learn Ratio Analysis In Minutes"

  2. The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

  3. A BONUS eBook..."Key Financial Statement Terms"

  4. Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series

The result? You get all these professionally created tools for a great low price.

Learn more on our product page:

Click the button to learn more about the Financial Analysis Success Kit

 

financial ratio analysis success kit

Click the button to learn more about the Financial Analysis Success Kit

Expense Coverage Days Formula

Explanation of Expense Coverage Days

Expense Coverage Days estimates the number of days that a company can pay for its business operations with cash and other liquid assets. This can also be used to expose situations where the company may be hording assets, which may be better put to use elsewhere in the company. The total cash expenditures are divided by 365 to convert the result to days.

Importance of Expense Coverage Days

An increasing Expense Coverage Days value is generally a positive sign, indicating the company can pay for its business operations with cash and other liquid assets for a longer period of time. Knowing how long the company can continue operations without any influx of cash is very important. Sometimes markets dry up quickly, poor management decisions send customers running to their competitors, and unforeseen disasters and events could all cause cash flows to slow or stop completely. Unless the company can secure cash or finance their operations another way, they will be left to survive on their liquid assets.