We're Not Very Worried About Elevate Uranium's (ASX:EL8) Cash Burn Rate

We’re Not Very Worried About Elevate Uranium’s (ASX:EL8) Cash Burn Rate

There’s no doubt that money can be made by owning shares of unprofitable businesses. By way of example, Elevate Uranium ( ASX:EL8 ) has seen its share price rise 704% over the last year, delighting many shareholders. Having said that, unprofitable companies are risky because they could potentially burn through all their cash and become distressed.

In light of its strong share price run, we think now is a good time to investigate how risky Elevate Uranium’s cash burn is. 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. Let’s start with an examination of the business’ cash, relative to its cash burn. Does Elevate Uranium Have A Long Cash Runway?

You can calculate a company’s cash runway by dividing the amount of cash it has by the rate […]

About the author: StockMan
Tell us something about yourself.
Posting Guidelines
Do
  • Do contribute something to the discussion
  • Do post factual information, analysis and your view on company valuations
  • Do disclose if you have an interest in a security
  • Do take our Terms of Use seriously
Do Not
  • Do not make low-content posts, unsubstantiated ramps or untruthful/misleading statements
  • Do not complain about a post unless you have reported it first, and not on the forum.
  • Do not post financial advice
  • Do not advertise or post sponsored content

Get involved!

Get Connected!

Come and join our community. Expand your network and get to know new people!

Comments

No comments yet