Category: Glossary

What Is Ending Cash? Ending Cash represents the total amount of cash and cash equivalents a company has at the end of a reporting period, after considering all cash movements from operations, investing, and financing activities. It’s like checking your total available funds after everything that happened in the period. What’s Included? 💼 Ending Cash…

What Is Net Burn Rate? Net Burn Rate represents how much money a company is losing (or gaining) each month after considering both expenses and revenue. It’s like your actual cash flow scorecard, showing the real rate of cash depletion. What’s Included? 💼 Net Burn Rate calculation includes: All Expenses (Gross Burn): Operating Expenses: Employee…

What Is Gross Burn Rate? Gross Burn Rate represents the total amount of money a company spends each month before factoring in any revenue. It’s like looking at all your expenses before opening your income envelope. What’s Included? 💼 Gross Burn Rate includes all monthly expenses: Operating Expenses: Employee Costs: Salaries and wages Benefits and…

What Is Cash Burn Rate? Cash Burn Rate shows how much money a company spends over a specific time period (usually monthly). It’s like tracking how fast money is flowing out of your business bank account when spending exceeds income. What’s Included? 💼 Cash Burn Rate calculations typically include: Operating Expenses: Salaries and wages Rent…

What Are They? Assets are everything a business owns or controls that has value. Liabilities are everything a business owes to others. It’s like comparing your belongings (assets) to your debts (liabilities) to understand your financial position. What’s Included? 💼 Assets typically include: Current Assets: Cash Inventory Accounts receivable Short-term investments Prepaid expenses Long-term Assets:…

What Is It? Equity represents the value that would be returned to owners after selling all assets and paying off all debts. It’s like your ownership stake in a business, whether you’re a sole owner, a shareholder, or an investor. What’s Included? 💼 Equity typically includes: Owner’s Investments: Initial capital Additional investments Stock purchases Retained…

What Is It? Liquidity represents how easily assets can be converted into cash without significantly losing value. It’s like having different types of money in your wallet (cash), in your checking account (easily accessible), or in a long-term deposit (takes time to access). What’s Included? 💼 Liquidity typically includes different levels of assets: Most Liquid…

What Is It? Cumulative Gain (Loss) represents your total profit or loss picture over time. It’s like keeping a running score of your financial performance, adding each new result to the previous total to see your overall progress. How to Use It To track your cumulative gain (loss): Start with your initial position Add each…

Fundraising is the process of collecting money to finance your business initiatives. It’s how companies get the resources they need to grow, develop products, or expand into new markets. Let’s break down the main types of fundraising: Equity Fundraising – selling shares of your company Debt Fundraising – taking loans or issuing bonds Grant Fundraising…

Operating Cash Flow shows how much cash a business generates from its regular business activities. It’s like checking your bank account after paying all your regular business expenses to see how much money you actually made from running your business. Let’s break down what makes up Operating Cash Flow: Revenue – money coming in from…