Runway Metrics

Definition

Financial calculations determining how long a company can operate on its current cash reserves and burn rate. The metrics that determine whether your startup lives or dies.

Example Usage

Based on our runway metrics, we need to raise Series B within 6 months or shut down operations.

Source: Startup finance terminology

Related Terms

Beginner

conservatism principle

The accounting guideline that requires recognizing expenses and liabilities immediately but only recognizing revenues and assets when reasonably certain—essentially pessimism as professional policy. It's why accountants anticipate losses but never gains.

💰 Finance / Accounting

Intermediate

reconcile

To make your financial accounts stop lying to each other by adjusting numbers until debits and credits agree. It's accounting's version of couples therapy—painful but necessary.

💰 Finance / Accounting

Intermediate

depreciated

The reduction in value of an asset over time due to wear, obsolescence, or market conditions—accountants' favorite way of reminding you your stuff isn't worth what you paid for it.

💰 Finance / Accounting

Advanced

Cross-Collateralization

Using assets pledged for one loan to secure multiple loans. It's a clever way for lenders to reduce risk and a way for borrowers to get tangled in interconnected debt.

💰 Finance / Accounting

Beginner

aged receivables

Outstanding customer invoices categorized by how long they've been unpaid, typically in 30-day buckets. The older they get, the more they resemble wine—except instead of improving with age, they become increasingly worthless.

💰 Finance / Accounting

Intermediate

deduction

A sum you legally remove from your taxable income to pay less to the government—basically society's way of saying 'if you spent it on this, we'll forgive you some taxes.' Also a logical reasoning method, but accountants care way more about the money part.

💰 Finance / Accounting

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