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Stock impact report

We're Not Very Worried About Praxis Precision Medicines' (NASDAQ:PRAX) Cash Burn Rate [Yahoo! Finance]

Praxis Precision Medicines, Inc. (PRAX) 
Company Research Source: Yahoo! Finance
listing, if you had bought and held the shares since 1999, you would have made a fortune. But while the successes are well known, investors should not ignore the very many unprofitable companies that simply burn through all their cash and collapse. So should Praxis Precision Medicines NASDAQ:PRAX ) 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. We'll start by comparing its cash burn with its cash reserves in order to calculate its cash runway. You can calculate a company's cash runway by dividing the amount of cash it has by the rate at which it is spending that cash. As at December 2024, Praxis Precision Medicines had cash of US$393m and no debt. Looking at the last year, the company burnt through US$132m. That means it had a cash runway of about 3.0 years as of December 2024. Notably, analysts forecast that Praxis Precision Medic Show less Read more
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