Ratios: Cash to Monthly Cash Expenses definitions Flashcards
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.