What it is
Runway is months of cash remaining at a stated net burn rate. It is a liquidity headline — only trustworthy when burn and cash definitions are explicit.
How it’s calculated
Cash ÷ monthly net burn (operating or total — say which). Scenario runway should use the same cash forecast cases leadership already reviews.
Where it breaks
Runway breaks with one-time cash items in burn, ignored financing events, or ARR growth stories that imply burn the cash slide doesn’t support.
In the board pack
Present runway beside cash forecast and burn multiple.
Keep the written definition stable across close, the board pack, and diligence so the same word never means two math models.
When this metric moves, point to the source schedule and the bridge components — not a screenshot from a private workbook.