Liquidity runway
An estimate of how long accessible liquidity can support a positive net cash burn. A simple calculation divides unrestricted cash plus actually drawable credit by net cash outflow per period, with assumptions stated.
Liquidity runway in round numbers
Hypothetical: US$60m of unrestricted cash plus actually drawable credit, in total, divided by US$10m of monthly net cash burn gives six months. Assume constant burn and continued credit availability, with no additional minimum-cash reserve or maturity payment outside the stated burn.
Scroll horizontally to read all columns.
| Measure | Amount |
|---|---|
| Total accessible liquidity | US$60m |
| Net cash burn | US$10m per month |
| Simple runway | 60 ÷ 10 = 6 months |
Terms Related to Liquidity runway
Maturity wall · Line of credit · Financial distress · DSCR · All of the glossary