Msi burn recovery taking too long3/31/2024 ![]() ![]() On this analysis of Multistack International's cash burn, we think its cash runway was reassuring, while its cash burn relative to its market cap has us a bit worried. So, Should We Worry About Multistack International's Cash Burn? From this perspective, it seems that the company spent a huge amount relative to its market value, and we'd be very wary of a painful capital raising. Multistack International's cash burn of AU$393k is about 44% of its AU$898k market capitalisation. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash to fund growth. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. While Multistack International does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Story continues How Easily Can Multistack International Raise Cash? ![]()
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