Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. We are certainly impressed with the progress iCAD has made over the last year, but it is also worth considering how costly it would be if it wanted to raise more cash to fund faster growth. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. Clearly, however, the crucial factor is whether the company will grow its business going forward. On balance, we'd say the company is improving over time. The revenue growth of 16% gives a ray of hope, at the very least. The image below shows how its cash balance has been changing over the last few years.ĭebt-equity-history-analysis How Well Is iCAD Growing?Īt first glance it's a bit worrying to see that iCAD actually boosted its cash burn by 11%, year on year. There's no doubt that this is a reassuringly long runway. That means it had a cash runway of about 3.9 years as of June 2021. Looking at the last year, the company burnt through US$9.6m. In June 2021, iCAD had US$38m in cash, and was debt-free. You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. View our latest analysis for iCAD How Long Is iCAD's Cash Runway? Let's start with an examination of the business' cash, relative to its cash burn. So should iCAD ( NASDAQ:ICAD) shareholders be worried about its cash burn? For the purpose of this article, we'll define cash burn as the amount of cash the company is spending each year to fund its growth (also called its negative free cash flow). Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. For example, although made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. There's no doubt that money can be made by owning shares of unprofitable businesses.
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