![]() ![]() ![]() Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. By comparing a company's annual cash burn to its total market capitalisation, we can estimate roughly how many shares it would have to issue in order to run the company for another year (at the same burn rate).ĪST SpaceMobile's cash burn of US$119m is about 7.3% of its US$1.6b market capitalisation. Commonly, a business will sell new shares in itself to raise cash and drive growth. ![]() Companies can raise capital through either debt or equity. There's no doubt AST SpaceMobile seems to be in a fairly good position, when it comes to managing its cash burn, but even if it's only hypothetical, it's always worth asking how easily it could raise more money to fund growth. Story continues How Hard Would It Be For AST SpaceMobile To Raise More Cash For Growth?
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