How long could a business survive if the money stopped coming in tomorrow? Worth asking about any company you're studying — and urgent about your own. COVID made it real for many owners, and most have never actually run the numbers. There's a simple way to find it — the same way you'd size up a personal emergency fund. Take a month of operating expenses, then the cash on hand that isn't already spoken for. Divide one into the other, and you get the runway: how many months the business could keep its doors open with zero revenue. The episode works the math on a company everyone knows — Costco. Pull the operating expenses, pull the free cash flow, and it's only about three and a half months of cushion, even for a giant. Then you turn the same lens wherever it matters to you — a company you're analyzing, or your own business.

If you prefer video, here is the YouTube video of the same content: https://youtu.be/PbG43B-Mfuw

Hosted by Julie Bonner. Bookkeeping and financial help for business owners — https://coeurbridge.com