re: Excess Cash on Hand - Businesses

I'd say the biggest variable here is the type of business you're speaking. Lifestyle business (i.e. cash flow biz) vs. Venture business (high growth cash flow negative biz). The former probably has a decent amount of reserves, but will budget what it keeps on hand and what it distributes to members/shareholders based on yearly op ex budgets and cap ex budgets. To THF point, most financial officers will forecast liabilities month-month and will make sure they have enough liquidity on hand to pay them off as well as a healthy margin of error. Ventures business is way too unpredictable and at any point could be flush with cash and 12 months later only have 2-3 months of runway left on their books and in need of more money.

Of course, there are other scenarios than the above, but I'd guess those are the two main types of businesses out there.