The Defensive Interval Ratio (DIR) — also called the Basic Defense Interval or Cash Burn Ratio — is a liquidity metric that measures how many days a company can continue to fund its daily operating expenses using only its most liquid assets (cash, marketable securities, and net receivables), without needing to access additional financing, sell long-term assets, or generate new revenue. It is calculated as: (Cash + Marketable Securities + Net Receivables) ÷ Daily Operating Expenses. Unlike the current ratio or quick ratio, which compare liquid assets to current liabilities, the DIR expresses liquidity in time — the number of days of operational self-sufficiency. A DIR of 90 means the company can sustain operations for 90 days purely on existing liquid assets. The DIR is particularly valuable for analyzing companies in cyclical industries, early-stage businesses, or companies facing revenue disruptions. For analysts and investors on Ventura Securities evaluating corporate liquidity — especially during economic stress, credit tightening, or sector-specific downturns — the DIR provides a more operationally intuitive liquidity measure than ratio-based metrics alone.
