Cash Out Date

The cash out date is the projected date when a company will deplete its existing cash reserves, based on its current and projected cash burn rate. It’s a crucial milestone for startups and fast-growing businesses that are still pre-profitability.

How It’s Determined:

Cash Out Date = Current Cash Balance / Monthly Burn Rate

Importance:

• Signals when a company must secure new funding or cut costs.

• Acts as a financial deadline for achieving key business milestones or profitability.

• Essential for planning fundraising rounds.