# Defensive Interval Ratio Calculator

URL: https://speedycalculator.com/calculators/finance/defensive-interval-ratio/
Last updated: 2026-10-25

> The defensive interval ratio calculator works out how many days a company could keep operating using only its liquid assets – cash, marketable securities and receivables – without new revenue.

## Inputs

- Cash and cash equivalents
- Marketable securities
- Accounts receivable
- Annual operating expenses
- Annual non-cash charges

## Results

- Defensive assets
- Daily cash expenditure
- Defensive interval ratio

## Formula

```
Current (defensive) assets = cash + marketable securities + accounts receivable
Daily cash expenditure = (annual operating expenses − non-cash charges) ÷ 365
DIR = defensive assets ÷ daily expenditure
```

## Explanation

The defensive interval ratio is a liquidity measure in days, independent of current liabilities. Longer is safer; many analysts like to see 90 days or more.

### How to use the Defensive Interval Ratio Calculator

- **Cash and cash equivalents**
- **Marketable securities**
- **Accounts receivable**
- **Annual operating expenses**
- **Annual non-cash charges**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Enter cash, marketable securities, receivables, annual operating expenses and non-cash charges (depreciation and amortisation).

### Tips

- Check whether rates are quoted annually, semi-annually or per period.
- Bond prices and yields move in opposite directions – a higher yield means a lower price.
- Use the bond's clean price (without accrued interest) for yield calculations.
- Credit ratios are most useful when tracked over several years.

### Common mistakes to avoid

- Confusing the coupon rate with the yield.
- Using the face value instead of the market price.
- Forgetting that callable bonds may be redeemed before maturity.

### Inputs explained

FieldWhat to enterCash and cash equivalentsAmount in your currencyMarketable securitiesAmount in your currencyAccounts receivableAmount in your currencyAnnual operating expensesAmount in your currencyAnnual non-cash chargesAmount in your currency

### What each result means

- **Defensive assets** = [Cash and cash equivalents] + [Marketable securities] + [Accounts receivable]
- **Daily cash expenditure** = ([Annual operating expenses] - [Annual non-cash charges])÷365
- **Defensive interval ratio** = [Defensive assets]÷[Daily cash expenditure]

### Example values

How the main result changes when **Cash and cash equivalents** changes and everything else stays at the example values above:

Cash and cash equivalentsDefensive interval ratio (days)150,00094225,000103300,000113375,000122450,000131600,000150

## Worked example

Inputs — Cash and cash equivalents: $300,000; Marketable securities: $200,000; Accounts receivable: $400,000; Annual operating expenses: $3,200,000; Annual non-cash charges: $280,000.

Results — Defensive assets = $900,000.00; Daily cash expenditure = $8,000.00; **Defensive interval ratio = 113 days**.

## FAQ

**What is a good defensive interval ratio?**
Typically 30–90 days or more, depending on the business.

**Why exclude non-cash charges?**
Depreciation doesn't use cash, so it shouldn't count as spending.

**How is it different from the current ratio?**
It ignores liabilities and measures days of operation.

**What formula does the Defensive Interval Ratio Calculator use?**
Current (defensive) assets = cash + marketable securities + accounts receivable.


## Sources

- [Corporate Finance Institute – financial ratios](https://corporatefinanceinstitute.com/)