Question

What does the Basic Defense Interval ratio measure?

A The company's revenue generation capabilities Correct Answer Incorrect Answer
B The company's creditworthiness Correct Answer Incorrect Answer
C The number of days for which the company can cover its cash expenses without additional financing Correct Answer Incorrect Answer
D The company's market share in the industry Correct Answer Incorrect Answer

Solution

Formula: (Cash & Bank balances + Net Receivables + Marketable Securities) / Daily Operating expenses

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