Is ParaZero Technologies (NASDAQ:PRZO) In A Good Position To Deliver On Growth Plans?
Just because a business does not make any money, does not mean that the stock will go down. By way of example, ParaZero Technologies has seen its share price rise 165% over the last year, delighting many shareholders. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.In light of its strong share price run, we think now is a good time to investigate how risky ParaZero Technologies' cash burn is. 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 . Let's start with an examination of the business' cash, relative to its cash burn.How Is ParaZero Technologies' Cash Burn Changing Over Time?How Hard Would It Be For ParaZero Technologies To Raise More Cash For Growth?Since it has a market capitalisation of US$21m, ParaZero Technologies' US$4.8m in cash burn equates to about 23% of its market value. That's fairly notable cash burn, so if the company had to