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How to use the result

Runway is usable cash divided by net monthly burn. Real cash flow is uneven: customers pay late, annual bills arrive, inventory is purchased in batches, taxes become due, and emergencies happen.

  • Use cash timing, not just accounting revenue.
  • Model known annual renewals and tax payments separately.
  • Set decision points before cash reaches the minimum reserve.
  • Recalculate monthly with actual bank and receivable data.