Calculate the Stress Liquidity Gap
Calculate a near-term liquidity gap under a defined stress case.
Quinn needs to know whether the next 30 days stay above a $1.5M operating cash floor if the two largest customer receipts slip by 10 days. Stress liquidity gap = available liquidity + stressed inflows - hard outflows - operating floor The common trap is checking only month-end cash. The company can breach the floor mid-month even if the month-end forecast recovers. Start With Available Liquidity Usable bank cash is $2.4M after excluding $300,000 of restricted cash. Stress testing starts with cash that can actually pay obligations, not every balance reported in the bank portal. Stress The Inflows Base receipts…
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