Liquidity Headroom
Short definition
Liquidity headroom is unrestricted cash plus a truly drawable commitment, minus near-term mandatory outflows. It is tighter than the cash line; an undrawable limit does not count.
Detailed explanation
Drawability depends on covenants, collateral gap, MAC and the bank’s stance. Signed limit and today’s drawable amount differ. Mandatory outflows include payroll, tax, principal and margin calls — not the whole payable book, only what falls due.
Covenant headroom is a different idea: a ratio cushion, not a cash cushion. They tend to break together.
Why it matters for the CFO
Capex, dividends and acquisitions must fit in this gap. Growing at zero headroom is overtrading or a refinancing crisis. A stress test recomputes headroom by scenario.
How it is calculated
Likidite marjı ≈ Kasa (kısıtsız) + Çekilebilir taahhüt − Kısa vadeli zorunlu nakit çıkışları
Variables in the formula
- Headroom: Usable cash and lines minus near-term mandatory outflows
How to read it
Headroom / monthly outflow is endurance. If the line is full, headroom is cash only. There is no universal threshold; the maturity wall and season set it.
Numerical example
Unrestricted cash 50 mn TL, drawable RCF 40 mn TL, four-week mandatory outflows 60 mn TL → liquidity headroom = 50 + 40 − 60 = 30 mn TL.
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Definitions are educational. They are not investment, credit or tax advice.