⚠ QuantPlus EarningsPro is a financial publication, not an investment adviser. QuantPlus Analytics, LLC is not registered as an investment adviser with the Securities and Exchange Commission or with the Ohio Division of Securities. Nothing published here is personalised investment advice, a recommendation to buy, sell or hold any security, or a forecast of what any security will do. Our figures measure what companies have already reported to the Securities and Exchange Commission. Past results do not indicate future results. All investing involves risk, including the loss of the amount you invest. Consider speaking to a qualified professional about your own situation before acting on anything you read here. The founder owns shares of some of the securities covered. Rankings are produced by applying the same method to every company and are not influenced by those positions.

← All 72 terms

Days to Cover

Earnings & Fundamentals

Days to cover (also called the short interest ratio) is calculated by dividing the total short interest by the average daily trading volume. It represents how many days it would take for all short sellers to close their positions.

What this tells you

Short interest divided by average daily trading volume — an estimate of how many trading days it would take for every short position to be closed out at recent volumes. Sometimes called the short interest ratio.

What it does not tell you

Both inputs are older than they look. Short interest is reported on a twice-monthly schedule with a reporting lag, and average volume is by definition backward-looking, so the figure describes a market that has already moved on. It also tells you nothing about why anyone is short — a hedge against a convertible bond and a bet against the business produce the same number. And it does not predict a squeeze. It describes a condition, not an outcome.

Further reading: Wikipedia

← Back to the glossary