Your Zero Cash Date is the predicted future date that your business will run out of money given your current rate of spending. Your Zero Cash Date can be estimated by taking your total cash on hand and dividing it by your average monthly cash burn (amount of cash you are spending each month). This will arrive you at approximately how many months you have until business runs out of cash, given no additional increases to that cash level.
Months Remaining = (Total Cash)/(Monthly Cash Burn)
Zero Cash Date = Current Month + Months Remaining
Related Posts
Metric Analysis: Churn Rate
Calculate your business's Customer Churn Rate and Revenue Churn Rate.
Metric Analysis: Customer Lifetime Value
Find how much revenue your customers are going to yield your company. Calculate your Customer Lifetime Value.
Metric Analysis: Annualized Run Rate
Find how much your current base of Monthly Recurring Customers will be worth over the next year. Calculate your Annualized Run Rate.