Started By
Message

re: Excess Cash on Hand - Businesses

Posted on 3/11/15 at 2:18 pm to
Posted by TheDirty1
Member since May 2011
363 posts
Posted on 3/11/15 at 2:18 pm to
Sorry for the confusion. I obviously did not word the question well. How much cash does the average business keep relative to expenses. I guess it could be considered an emergency fund for a business. If a companies expenses are $100 a month and $200 is kept in cash they would have 2 months expenses in cash. What would would you think is a common ratio of cash/monthly expenses.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 3/11/15 at 2:21 pm to
They don't base it on expenses normally. It's a liquidity calculation. You normally want to see a current ratio of above 1.

There is also the quick ratio, but that's not as commonly used.
first pageprev pagePage 1 of 1Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram