Description
Measure supplied proceeds minus a liquidation-preference amount.
Corporate finance calculations require consistent accounting periods, currencies, share bases and contract definitions. Restricted cash differs from available cash, a discount fraction depends on its denominator, and a debt or reserve balance is a bookkeeping relation. Supplied cash flows and rates describe scenarios rather than verified accounts or investment outcomes.
Measure supplied proceeds minus a liquidation-preference amount.
When to use this tool
Use Preferred Equity Liquidation Preference Gap when you already have preferenceAmount, availableProceeds and need to measure supplied proceeds minus a liquidation-preference amount.
How to use the tool and how it works
- Enter preferenceAmount, availableProceeds. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read signedGap. Use the output convention below.
Return availableProceeds-preferenceAmount with signed inputs and result.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| preferenceAmount | Preference Amount | Required. Finite number. |
| availableProceeds | Available Proceeds | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| signedGap | Signed Gap | Required. Finite number. |
{
"input": {
"preferenceAmount": 12,
"availableProceeds": 17
},
"output": {
"signedGap": 5
}
}Limitations and assumptions
- This is one signed gap, not a distribution waterfall, preferred-rights interpretation, payout, valuation or legal entitlement.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Reconcile actual statements, financing agreements, cap tables and cash-flow forecasts. Use full contractual terms and appropriate valuation or accounting methods when a local balance, fraction or present-value term cannot answer the financial question.
References
Similar or alternative tools
- Restricted Cash Adjusted Balance
Separate supplied restricted cash and calculate a conditional share.
- Facility Commitment Fee Unused Base
Calculate a supplied commitment fee on an unused facility balance.