How To Calculate Runway in Sage Contractor | Arithmix

Calculating runway in Sage Contractor can be a valuable tool for any business owner or manager. But first, let's define what runway is and when it's valuable to calculate it.

What Is Runway?

Runway is a financial metric that measures how long a company can continue to operate with its current cash balance. Essentially, it's a measure of how long a company can "run" before it runs out of money.

To calculate runway, you need to know your current cash balance and your monthly burn rate. Your burn rate is the amount of money you spend each month to keep your business running. This includes expenses like rent, salaries, and utilities.

Once you have these numbers, you can divide your cash balance by your monthly burn rate to get your runway. For example, if you have $100,000 in cash and your monthly burn rate is $10,000, your runway is 10 months.

When Is It Valuable To Calculate Runway?

Calculating runway can be valuable in a number of situations. For example, if you're considering taking on debt or raising equity, knowing your runway can help you determine how much money you need to raise and how quickly you need to do it.

Runway can also be a useful tool for managing cash flow. If your runway is short, you may need to cut expenses or find ways to increase revenue in order to extend it. On the other hand, if your runway is long, you may be able to invest in growth opportunities or take on new projects.

Finally, calculating runway can be a helpful exercise in understanding the financial health of your business. If your runway is short, it may be a sign that you need to make changes to your business model or operations in order to become more sustainable.

In conclusion, calculating runway in Sage Contractor can be a valuable tool for any business owner or manager. By understanding your runway, you can make informed decisions about financing, cash flow, and the overall health of your business.

How Do You Calculate Runway in Sage Contractor

Sage Contractor 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 Sage Contractor 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 Sage Contractor, 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.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating Runway in Arithmix

Calculating metrics like Runway is simple in Arithmix. Once you've created your free account, you’ll be able to import your Sage Contractor data, and use it to create natural language formulas for metrics like Runway.

Arithmix is designed to give you the power to build any calculations you want on top of your Sage Contractor data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.