Baker says investors are running a new metric: days of solvency with zero revenue.
“Days of liquidity with zero revenue has been the acid liquidity test that I think a lot of investors have been working through. And then from a broader perspective, I think a couple of insights.”
Baker says every investment firm is now running days of solvency with zero revenue, a previously unused metric.
“It's not the Altman Z score. It's not the debt to EBITDA ratio. It's not interest coverage. It is days of solvency with a zero revenue.”