Count how many days a company can operate from liquid assets alone.
Please do not make financial decisions based on these results.
What is the Defensive Interval Ratio Calculator?
Count how many days a company can operate from liquid assets alone. To use the Defensive Interval Ratio Calculator, enter cash, marketable securities, receivables, annual operating expenses; it returns defensive interval (days), and shows them instantly as you type.
Pricing bonds and testing credit
Price a bond with the Bond Price Calculator, solve for yield with the Bond YTM Calculator and measure rate risk with convexity and duration. If the bond is callable, compare yield to maturity with the yield to call.
On the credit side, combine Debt to Equity Calculator, interest coverage and the Altman Z-score. Together they show leverage, ability to pay and the odds of distress.
- Yields. Current yield, YTM, yield to call and bond-equivalent yield answer different questions.
- Coverage. DSCR, times interest earned and cash flow to debt show repayment capacity.
- Loss. LGD and credit spread translate risk into expected loss and extra yield.
How to use the Defensive Interval Ratio Calculator
- Enter your numbers. Start with Cash ($), Marketable securities ($), Receivables ($), then fill in Annual operating expenses ($). Take the price, coupon and maturity from the bond’s listing. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Defensive interval (days). Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Defensive Interval Ratio Calculator using the default values shown in the calculator above:
Inputs
| Cash ($) | 400,000 |
|---|---|
| Marketable securities ($) | 200,000 |
| Receivables ($) | 500,000 |
| Annual operating expenses ($) | 5,500,000 |
Results
| Defensive interval (days) | 73 days |
|---|
With these inputs the calculator returns Defensive interval (days): 73 days. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Cash ($) from 400,000 to 480,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Defensive interval (days) | 73 days | 78.3 days | +7.3% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. The result is only as accurate as the numbers you enter and the formula shown above. It is for information, not financial, tax or legal advice.
Frequently asked questions
What does DIR tell me?
How long the firm can pay its bills without new revenue.
Why do bond prices fall when rates rise?
New bonds pay the higher rate, so older, lower-coupon bonds must sell at a discount to match the market yield.
What interest coverage is safe?
Above about 3 times is comfortable; below 1.5 times signals stress.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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- Altman Z-Score Calculator
- Bond Price Calculator
- Bond Current Yield Calculator
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