Weeks of Liquidity on Hand

What is Weeks of Liquidity on Hand?

Weeks of liquidity on hand is a measurement of a business’s available liquidity. The formula appearing below can help you find this metric for your company:

Weeks of liquidity on hand = (current assets/current weekly cash outflow)/52

By completing the weeks of liquidity on hand formula, you can determine how many weeks your business can continue meeting its financial obligations. This metric is especially helpful for companies facing economic uncertainty.

Related terms

Average Days Delinquent

Average day(s) delinquent (ADD) is a metric that helps determine the efficiency of a company’s debt collection efforts.

Budgeting and Planning

Budgeting and planning is the process of setting financial goals, creating a detailed plan to achieve those goals, and allocating resources to various activities and initiatives within an organization.

Business Intelligence

Business intelligence (BI) refers to the use of technology, tools, processes, and methodologies to analyze and transform raw data into actionable insights for making informed business decisions.

Cash Conversion Cycle

The cash conversion cycle (CCC) measures the rate at which your business converts its investments and inventory into cash.

Cash Flow Coverage Ratio

A company’s cash flow coverage ratio (CFCR) clarifies its ability to pay its debts based on cash flow from operations.

Cash Flow Optimization

This strategy focuses on maximizing the inflow of cash while efficiently managing outflows to maintain a healthy liquidity position.