Cash Runway

Cash Runway is cash on hand divided by net burn: the number of months a company can keep operating before it runs out of money at the current spend rate. It’s the number a board actually asks for, usually before any other metric in the deck.

Runway is also the number most likely to be stale, because either side of the fraction can lag reality: a burn figure built on last month’s plan instead of this month’s actuals, or a cash balance that hasn’t caught up with the bank. See Burn Rate for the denominator, and how rexfin keeps both sides current in cash crunch navigation.