Defensive interval ratio - do you include interest payments as one of the costs?

[archived_user]

G’day
Defensive interval ratio = cash+cash equiv + receivables / avg daily expenditures.
Expenditures = can include expenses from income statement such as COGS, SG&A, R&D…don’t typically include tax.
So, does that mean expense can include interest expenses?

 

[archived_user]

Reference here is towards business operational expenditures. The list which you’ve mentioned also contains expenses which are related to day to day business operations only.