The Cash Runway is also referred to as a Business Burn Rate.

The Cash Runway is a critical Key Performance Indicator (KPI) for new or start-up businesses. 

It is the rate at which a business is losing money and is usually expressed per month, i.e., a business burn rate is $45,000 per month.

It is a measure of how fast a business will burn through its share capital.  It is an indication of how long a company has before it should close down; make a profit or find additional funding.   

If you would like to discuss further please contact us:

McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD

www.mcnamaraandcompany.com.au/contact-us

Phone +61 3 9428 1062

Email admin@mcnamaraandco.com