![]() ![]() As a result, we'd venture that the company could raise more cash for growth without much trouble, albeit at the cost of some dilution. Nano Dimension's cash burn of US$117m is about 18% of its US$645m 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 and fund growth. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. ![]() While Nano Dimension seems to be in a decent position, we reckon it is still worth thinking about how easily it could raise more cash, if that proved desirable. Story continues How Easily Can Nano Dimension Raise Cash? You can see how its cash balance has changed over time in the image below. Even though this is but one measure of the company's cash burn, the thought of such a long cash runway warms our bellies in a comforting way. That means it had a cash runway of about 8.2 years as of June 2023. In the last year, its cash burn was US$117m. As at June 2023, Nano Dimension had cash of US$954m and such minimal debt that we can ignore it for the purposes of this analysis. See our latest analysis for Nano Dimension How Long Is Nano Dimension's Cash Runway?Ī company's cash runway is calculated by dividing its cash hoard by its cash burn. The first step is to compare its cash burn with its cash reserves, to give us its 'cash runway'. In this report, we will consider the company's annual negative free cash flow, henceforth referring to it as the 'cash burn'. Given this risk, we thought we'd take a look at whether Nano Dimension ( NASDAQ:NNDM) shareholders should be worried about its cash burn. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Just because a business does not make any money, does not mean that the stock will go down.
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