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Ratios: Cash to Monthly Cash Expenses definitions

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  • Cash to Monthly Cash Expenses Ratio
    Internal measure showing how many months a company can operate using only its current cash balance, assuming no new cash inflows.
  • Monthly Cash Expenses
    Total cash outflows related to business operations for a single month, often derived from the operating section of the statement of cash flows.
  • Cash Balance
    Amount of cash a company has on hand at a specific point, typically measured at year-end for ratio calculations.
  • Cash Burn
    Rate at which a company spends its available cash, especially when no new cash is coming in.
  • Operating Activities
    Section of the statement of cash flows detailing cash inflows and outflows from core business operations.
  • Statement of Cash Flows
    Financial report summarizing cash inflows and outflows from operating, investing, and financing activities over a period.
  • Investing Activities
    Section of the statement of cash flows showing cash used for or generated from buying and selling long-term assets.
  • Financing Activities
    Section of the statement of cash flows reflecting cash transactions with lenders and shareholders, such as loans or equity.
  • Medicare
    Government program providing healthcare payments, often a major cash inflow source for healthcare organizations.
  • Medicaid
    Government-funded program offering healthcare payments, significant for organizations relying on public sector revenue.
  • Third-Party Payers
    Entities like insurance companies that pay healthcare providers on behalf of patients, impacting cash inflows.
  • Year-End
    The end of a company's fiscal year, commonly used as a reference point for financial balances and calculations.
  • Cash Outflows
    Payments made by a company, especially those related to operating expenses, reducing the available cash balance.