Cash on Hand

Definition

The Cash On Hand KPI refers to the amount of money that your business has immediately available and can spend as needed.

Characteristics

-The amount of Cash On Hand determines how much   money can be spent without going into debt
-Typically included are assets (for example investments or   purchases) that can be converted to cash in a short amount   of time
-Includes petty cash and money in bank accounts
-It is not possible to have negative Cash On Hand

Example

A company has 100 € at the beginning of the month. At the end of the month 50 € was spent and 20 € was added. Therefore Cash On Hand at the end of the month is 70 € (100 – 50 + 20).

Negations / Exclusions

-Excluded are any assets that can not be converted to cash   in a short amount of time (for example office equipment)

Cash Balance, Cash, Liquid Assets

COH

Currency
(Euro / Dollar / YEN…)

Calculation

Rule of thumb: # of units sold x price per unit in a certain time period.

Cost Total

Cost Labour

Net Cash Burn

Cash on Hand

Head-count

Individual KPIs