Hi there are other threads I’ve seen on this topic but wanted to post in case I don’t get replies over there.
- How do I calculate how much cash runway that a listed company has (whether it’s FCF +ve or -ve)? I assume I need to include changes in working capital here?
Is this correct:
Current cash balance + all debt on balance sheet (including unused credit line) / cash burn = xx (is the output in years or months?)
Where cash burn = operating cash flow - maintenance capex
What happens if cash burn is > 0? I assume it needs to be negative for it to be cash burn
Do we use ebitda or operating cash flow as numerator? Assuming operating cash flow includes interest payment. Or do we use ebitda and include interest payment as cash burn?
4for for companies with positive fcf vs negative fcf?
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