# How To Calculate Runway in JD Edwards Enterprise One | Arithmix

Learn how to calculate runway in JD Edwards Enterprise One with our step-by-step guide. Ensure your business is prepared for success with accurate runway calculations.

Calculating runway is an important aspect of financial planning for any business. It helps you determine how long your business can sustain itself with its current cash flow. In this article, we will discuss what runway is, when it is valuable to calculate runway, and how to calculate it.

## What Is Runway?

Runway is the amount of time a business can continue to operate with its current cash flow. It is typically measured in months and is calculated by dividing the current cash balance by the average monthly cash burn rate. The cash burn rate is the amount of money a business spends each month on expenses such as rent, salaries, and other operating costs.

For example, if a business has \$100,000 in cash and its average monthly cash burn rate is \$10,000, its runway would be 10 months. This means that the business can continue to operate for 10 months without any additional funding.

## When Is It Valuable To Calculate Runway?

Calculating runway is valuable for businesses in a variety of situations. For startups, it is important to know how long the business can operate without additional funding. This information can be used to determine when to seek additional funding or when to focus on increasing revenue to extend the runway.

For established businesses, calculating runway can help with financial planning and decision-making. It can help businesses determine when to invest in new projects or when to cut costs to extend the runway.

## How To Calculate Runway

To calculate runway, you will need to determine your current cash balance and your average monthly cash burn rate. Your cash balance can be found on your balance sheet, and your cash burn rate can be calculated by adding up all of your monthly expenses.

Once you have these two numbers, divide your cash balance by your average monthly cash burn rate. The result will be the number of months your business can continue to operate with its current cash flow.

It is important to note that runway is not a guarantee of future success. It is simply a measure of how long a business can continue to operate with its current cash flow. Businesses should always be looking for ways to increase revenue and reduce expenses to extend their runway and ensure long-term success.

In conclusion, calculating runway is an important aspect of financial planning for any business. It helps businesses determine how long they can operate with their current cash flow and make informed decisions about future investments and expenses. By following the steps outlined in this article, businesses can easily calculate their runway and use this information to plan for the future.

## How Do You Calculate Runway in JD Edwards Enterprise One

JD Edwards Enterprise One itself isn’t naturally geared towards letting you calculate complex metrics like Runway. As an alternative, teams typically use products like Arithmix to import data from JD Edwards Enterprise One and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like JD Edwards Enterprise One, combine it with data from other systems, and create calculations like Runway.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.