We’re Hopeful That Fission Uranium (TSE:FCU) Will Use Its Cash Wisely

Source: Shutterstock We can readily understand why investors are attracted to unprofitable companies. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you’d have done very well indeed. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.

So, the natural question for Fission Uranium ( TSE:FCU ) shareholders is whether they should be concerned by its rate of cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. We’ll start by comparing its cash burn with its cash reserves in order to calculate its cash runway.

View our latest analysis for Fission Uranium How Long Is Fission Uranium’s Cash Runway?

A company’s cash runway is calculated […]

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