Defensive Interval Ratio — Smart Financial Analysis
Calculate how many days a company can operate using only its liquid assets. Apple can last 69 days. Most startups have 40 days. During COVID, restaurants with DIR under 14 days closed permanently.
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The current ratio compares assets to liabilities (asset-to-debt relationship). Industry benchmarks vary: Technology 90+ days, Manufacturing 60–90 days, Retail 45–60 days, Healthcare 60–75 days. Liquid assets = Cash & Equivalents + Marketable Securities + Accounts Receivable. Daily Operating Expenses = (Annual Operating Expenses − Non-Cash Charges) ÷ 365.
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Why: The Defensive Interval Ratio (DIR) measures how many days a company can operate using only its liquid assets (cash, marketable securities, accounts receivable) if all revenue st...
How: Enter Cash & Equivalents ($), Marketable Securities ($), Accounts Receivable ($) to get instant results. Try the preset examples to see how different scenarios affect the outcome, then adjust to match your situation.
Run the calculator when you are ready.
Quick Examples — Click to Load
Liquid Assets
Operating Expenses
DIR Gauge
Industry Comparison
Survival Runway Timeline
Liquidity Assessment
Defensive Interval Ratio
Your company can operate for 146.0 days using only liquid assets. Industry benchmark: 60.0 days.
For educational purposes only — not financial advice. Consult a qualified advisor before making decisions.
💡 Money Facts
Defensive Interval Ratio analysis is used by millions of people worldwide to make better financial decisions.
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The Defensive Interval Ratio answers the scariest question in business: "How many days can we survive if all revenue stops?" Apple can last 69 days on liquid assets alone. Most startups have 40 days. During COVID, restaurants with DIR under 14 days closed permanently. This calculator measures your financial survival runway.
DIR vs Current Ratio
The current ratio compares assets to liabilities. DIR measures survival runway in days — how long you can pay daily expenses from liquid assets alone. DIR answers "How many days until we run out of cash?" while current ratio answers "Can we cover our short-term debts?"
What is a Good Defensive Interval Ratio?
Industry benchmarks vary: Technology 90+ days, Manufacturing 60–90 days, Retail 45–60 days, Healthcare 60–75 days. Below 30 days is concerning; below 14 days is critical. Startups often target 18–24 months of runway, but DIR uses liquid assets only — typically 40–90 days for early-stage companies.
Liquid Assets Definition
Liquid assets = Cash & Equivalents + Marketable Securities + Accounts Receivable. These can be converted to cash quickly (typically within 90 days) without significant value loss. Inventory is excluded because it may not be quickly sellable during a crisis.
Daily Operating Expenses
Daily Operating Expenses = (Annual Operating Expenses − Non-Cash Charges) ÷ 365. Non-cash charges (depreciation, amortization, stock-based comp) are excluded because they do not require actual cash outflow. Only expenses that drain cash are counted.
DIR for Startups
Startups often have limited revenue and burn through cash. DIR shows runway in days using only liquid assets. A startup with $200K liquid and $5K daily burn has 40 days — tight. Investors and founders use DIR alongside burn rate to plan fundraising and cost cuts.
Did You Know?
Expert Tips
Track Monthly
Startups should calculate DIR monthly alongside burn rate. Declining DIR signals need for fundraising or cost cuts.
Compare to Industry
A 50-day DIR is fine for retail but concerning for tech. Always benchmark within your industry.
Exclude Non-Cash
Depreciation and amortization don't drain cash. Subtract them from OpEx for accurate daily burn.
Combine with Cash Ratio
DIR uses liquid assets; cash ratio uses only cash. Use both for full liquidity picture.
Key Statistics
Official Data Sources
Disclaimer: This calculator provides estimates. Verify against audited financial statements. Industry benchmarks are approximate. Not financial advice.
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