hard · Corporate Credit Analysis
A company has $350 million in available liquidity (cash + undrawn revolver) and faces a stressed monthly cash burn of $25 million.
What is its liquidity runway, and how is it likely to be viewed by a credit analyst?
- 8.75 months; highly distressed
- 1.4 months; imminent default
- 14 months; generally manageable but requires monitoring
- 35 months; exceptional liquidity
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