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To calculate day's cash on hand is calculated: Cash/ ([operating expense - depreciation expense]/365). Example:
Cash and cash Equivalents = $1,150,000
Total operation Expenses = $33,400,000
Depreciation = $1,950,000
Days in period = 365
$33,400,000 - $1,950,000 = $31,450,000
31,450,000 / 365 = 86,164
1,150,000 / 86,164 = 13.3 days
DCOH ratio = 13.3 days
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