Cash Zero Date

The cash zero date is the specific point in time when a business is expected to completely run out of cash, based on its current operating expenses, committed liabilities, and incoming cash flows. Similar to a cash out date it provides a precise reference for financial and operational decision-making.

Why It Matters:

• Establishes an urgent financial deadline.

• Forces strategic prioritization: cost-cutting, pivoting, or accelerated fundraising.

• Used by boards and investors to monitor financial risk.

This date is typically revised periodically based on actual cash flow performance versus forecast assumptions.