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

CFA Level I
#1

G’day

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?

#2

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.