Daily Operating Expenses

Definition: Daily Operating Expenses is an estimate of the average cash outflow required to fund a company's operations for one day. It is calculated as (Opera…

Daily Operating Expenses is an estimate of the average cash outflow required to fund a company's operations for one day. It is calculated as (Operating Expenses − Non-cash Expenses) / 365, where non-cash expenses such as depreciation and amortization are removed. Some analysts use (COGS + SG&A − D&A) / 365. It is the denominator of the Defensive Interval Ratio, which measures how many days a company could continue to operate using only its liquid assets if all other revenue sources were cut off.