Definition · liquidity
Days cash on hand
Days cash on hand measures how many days a company can cover operating expenses using available cash. For days cash on hand, the useful boundary is the source cash view, timing horizon, owner, liquidity exposure, and operating decision before payment timing, runway, or financing options change.
Also known as cash on hand days, days of cash on hand, DCOH
Why it matters
Understanding days cash on hand matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo computes days cash on hand from live cash and operating-expense data and explains changes by their drivers.
In practice
Liquidity example
Finance teams use days cash on hand when they need to understand cash timing before a decision is made. A team might compare expected receipts, payroll, vendor payments, and debt obligations to decide what action is needed this week.
Pluvo example
Pluvo computes days cash on hand from live cash and operating-expense data and explains changes by their drivers.
In practice, teams should define days cash on hand with a clear source, owner, time period, and decision before they use it in reporting, planning, or operating reviews.
Understanding days cash on hand matters because cash decisions are time-sensitive. Teams need to know when money moves, which balance changes, who owns the next action, and what can still be changed before liquidity tightens. Pluvo computes days cash on hand from live cash and operating-expense data and explains changes by their drivers.
A strong workflow for days cash on hand separates the definition from the action: first agree what the term means, then decide how it is measured, when it changes, and who is accountable for the next step.
Pluvo computes days cash on hand from live cash and operating-expense data and explains changes by their drivers.
FAQ
What is days cash on hand?
Days cash on hand measures how many days a company can cover operating expenses using available cash. For days cash on hand, the useful boundary is the source cash view, timing horizon, owner, liquidity exposure, and operating decision before payment timing, runway, or financing options change.
How do you calculate days cash on hand?
To calculate days cash on hand, define the source data, time period, comparison basis, and owner before applying the formula. The useful answer is not only the math; it is whether the inputs and timing match the decision the metric supports.