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