Runway 

Runway is a metric that indicates how long a company can continue operating at its current burn rate before it runs out of cash. It’s a critical indicator for startups and venture-backed businesses in the pre-profitability phase. 

Formula: 

Runway (in months) = Current Cash Balance / Monthly Net Burn Rate    

A longer runway gives a company more time to achieve product-market fit, secure additional funding, or reach profitability, while a short runway signals urgency for operational adjustments or fundraising. Founders and CFOs closely monitor runway during board meetings and investor pitches.