This interval measure ratio formula helps you find the defensive interval ratio using the current assets and average daily operating costs of the company. The defensive interval ratio formula helps you assess your company's financial capacity in meeting its debts or its daily expenses. The defensive interval ratio is also called as basic defense interval. Using the below formula one can find the DIR value of a company by current assets by daily cash expenses ie., operating costs.
The defensive interval ratio formula is very useful for the company to analyze its growth. It is commonly used as a supplementary financial analysis ratio, along with the current or quick ratio, to evaluate a company's financial health. You can also use the defensive interval measure calculator provided above to measure the liquidity ratio of your company.
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