If someone asks what a business’s cash burn is they are just asking for the free cash flow correct? In other words, a cash burn is just net income + DA - change in NWC - Capex, but for a growing business/ startup you likely have negative net income yeah?
Appreciate the help.
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That's correct. Often this is in the context of pre-income companies, so the math is just FCF = -NWC - capex.
Thanks g
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