Here’s Why We’re Not Too Worried About Race Oncology’s (ASX:RAC) Cash Burn Situation – Simply Wall St – DC Initiative on Racial Equity
Skip to content Skip to footer

We can readily understand why investors are attracted to unprofitable companies. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

Given this risk, we thought we’d take a look at whether Race Oncology (ASX:RAC) shareholders should be worried about its cash burn. For the purposes of this article, cash burn is the annual rate at which an unprofitable company spends cash to fund its growth; its negative free cash flow. The first step is to compare its cash burn with its cash reserves, to give us its ‘cash runway’.

View our latest analysis for Race Oncology

Does Race Oncology Have A Long Cash Runway?

A cash runway is defined as the length of time it would take a company to run out of money if it kept spending at its current rate of cash burn. In December 202


Read Full Article at simplywall.st


Leave a comment

DC Initiative on Racial Equity
📧 dcracialequity@gmail.com

© 2022. All Rights Reserved.

AllEscort