Here's Why We're Not At All Concerned With KORU Medical Systems' (NASDAQ:KRMD) Cash Burn Situation

Simply Wall St.09-06

There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring ...

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For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring ...</p>\n\n<a href=\"https://finance.yahoo.com/news/heres-why-were-not-concerned-134603942.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PSQ","symbol_name":"纳指反向ETF","start_time":0,"source_url":"https://finance.yahoo.com/news/heres-why-were-not-concerned-134603942.html","article_id":"2465618443","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/oY9vQNBdaHAXW3k6VZJztA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/b23fe2923663ce315e2ef7ba313db8b9"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2465618443","pubTimestamp":1725630363,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com?So should KORU Medical Systems  shareholders be worried about its cash burn?In this article, we define cash burn as its annual  free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves.When Might KORU Medical Systems Run Out Of Money?As you can probably tell by now, we're not too worried about KORU Medical Systems' cash burn. In particular, we thin","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PSQ":"纳指反向ETF","QLD":"纳指两倍做多ETF","NDAQ":"纳斯达克OMX交易所","SQQQ":"纳指三倍做空ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","BK4585":"ETF&股票定投概念","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","KRMD":"Repro Med Systems, Inc.","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4082":"医疗保健设备","TQQQ":"纳指三倍做多ETF","BK4588":"碎股","QID":"纳指两倍做空ETF","KORU":"Direxion Daily South Korea Bull",".IXIC":"NASDAQ Composite","BK4112":"金融交易所和数据"},"translate_title":"这就是为什么我们根本不担心KORU Medical Systems（纳斯达克股票代码：KRMD）的现金消耗情况","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"NDAQ":1,"KORU":1,"KRMD":1,"TQQQ":0.6,"SQQQ":0.6,"QLD":0.6,"QID":0.6,"PSQ":0.6,"NQmain":0.6,"MNQmain":0.6},"content_text":"There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although software-as-a-service business Salesforce.com lost money for years while it grew recurring revenue, if you held shares since 2005, you'd have done very well indeed. But while history lauds those rare successes, those that fail are often forgotten; who remembers Pets.com? \n So should KORU Medical Systems (NASDAQ:KRMD) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves. \n See our latest analysis for KORU Medical Systems \n When Might KORU Medical Systems Run Out Of Money? \n A company's cash runway is calculated by dividing its cash hoard by its cash burn. As at June 2024, KORU Medical Systems had cash of US$10m and no debt. Looking at the last year, the company burnt through US$1.1m. So it had a cash runway of about 9.4 years from June 2024. While this is only one measure of its cash burn situation, it certainly gives us the impression that holders have nothing to worry about. The image below shows how its cash balance has been changing over the last few years. \n\n\n\n  NasdaqCM:KRMD Debt to Equity History September 6th 2024\n \n\nHow Well Is KORU Medical Systems Growing?\n Happily, KORU Medical Systems is travelling in the right direction when it comes to its cash burn, which is down 84% over the last year. And while hardly exciting, it was still good to see revenue growth of 4.7% during that time. We think it is growing rather well, upon reflection. Clearly, however, the crucial factor is whether the company will grow its business going forward. For that reason, it makes a lot of sense to take a look at our analyst forecasts for the company. \n How Hard Would It Be For KORU Medical Systems To Raise More Cash For Growth? \n There's no doubt KORU Medical Systems 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. Companies can raise capital through either debt or equity. One of the main advantages held by publicly listed companies is that they can sell shares to investors to raise cash and fund growth. 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). \n KORU Medical Systems' cash burn of US$1.1m is about 1.0% of its US$111m market capitalisation. That means it could easily issue a few shares to fund more growth, and might well be in a position to borrow cheaply. \n Is KORU Medical Systems' Cash Burn A Worry? \n As you can probably tell by now, we're not too worried about KORU Medical Systems' cash burn. In particular, we think its cash runway stands out as evidence that the company is well on top of its spending. On this analysis its revenue growth was its weakest feature, but we are not concerned about it. After considering a range of factors in this article, we're pretty relaxed about its cash burn, since the company seems to be in a good position to continue to fund its growth. An in-depth examination of risks revealed 2 warning signs for KORU Medical Systems that readers should think about before committing capital to this stock. \n If you would prefer to check out another company with better fundamentals, then do not miss this free list of interesting companies, that have HIGH return on equity and low debt or this list of stocks which are all forecast to grow. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2465618443"}