calculate_defensive_interval
Calculate the defensive interval ratio: how many days a company can fund its operating expenses from liquid assets alone, without new revenue. Formula: Defensive Interval = (Cash + Marketable Securities + Receivables) / Daily Operating Expenses. WHEN TO USE: Use to gauge cash runway from liquid assets — useful for startups, distressed companies, or businesses with lumpy revenue. WHEN NOT TO USE: Do NOT use for companies with stable, predictable revenue where ongoing collections are dependable. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { defensive_interval_days: number (e.g. 45.3 days), inputs }. PARAMETERS: cash_and_equivalents (required): Cash and cash equivalents, e.g. 80000. Must be >= 0. marketable_securities (required): Short-term marketable securities, e.g. 30000. Must be >= 0. receivables (required): Accounts receivable, e.g. 60000. Must be >= 0. daily_operating_expenses (required): Daily operating expenses (annual opex / 365), e.g. 3750. Must be > 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| receivables | Yes | Accounts receivable, e.g. 60000. Must be >= 0. | |
| cash_and_equivalents | Yes | Cash and cash equivalents, e.g. 80000. Must be >= 0. | |
| marketable_securities | Yes | Short-term marketable securities, e.g. 30000. Must be >= 0. | |
| daily_operating_expenses | Yes | Daily operating expenses (annual opex / 365), e.g. 3750. Must be > 0. |