Defensive interval ratio - do you include interest payments as one of the costs?


Defensive interval ratio = cash+cash equiv + receivables / avg daily expenditures.

Expenditures = can include expenses from income statement such as COGS, SG&A, R&D…don’t typically include tax.

So, does that mean expense can include interest expenses?

Reference here is towards business operational expenditures. The list which you’ve mentioned also contains expenses which are related to day to day business operations only.