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Course: Getting strategic with cash flow

Part 1

 

6 minute read

Average cash buffer days

Cash buffer days take capital, usually in the form of cash on hand. Many businesses struggle during downturns because they don't have a plan for enduring the unexpected.

 

JPMorgan Chase & Co. Institute, “Small Business Cash Liquidity in 25 Metro Areas.”

Cash buffer days measured from 2013 to 2017 in the cross-sectional sample.

Bell curve graph. Title: Distribution of cash buffer days in 25 U.S. metro areas. Median cash buffer days: 15. 50% of small business had fewer than 15 cash buffer days.