Cash Reality & Runway

Evaluates whether the business can survive the timing of real cash flows under normal and stressed operating conditions. It surfaces liquidity risk hidden inside burn, commitments, and working capital dynamics — focusing on when cash leaves and enters the business, not headline runway or forecasted assumptions.

Evaluators apply strict cash definitions. Assumptions, averages, or inferred timing score zero.

Why cash reality matters more than profit

A business can be profitable on paper and still run out of cash. The timing of when money enters and leaves the business determines survival, not accounting margins. Many founders rely on headline runway numbers that assume stable burn and predictable collections — both of which fail under real conditions.

This evaluator decomposes burn into its real structure, maps committed outflows, identifies working capital exposure, and stress-tests runway under adverse scenarios to determine whether the business can survive between decisions.

Typical flow

1. 1
   Decompose true monthly burn
2. 2
   Map committed cash outflows and timing
3. 3
   Identify working capital exposure
4. 4
   Stress-test runway under downside scenarios
5. 5
   Re-evaluate survivability

Evaluation scope

Evidence requirements

• Bank balances and cash movements
• Contracted and committed cash obligations
• Real burn components, not budgets
• Working capital timing gaps
• Unknown cash timing scores zero

How missing evidence is generated

If required evidence is missing, ProfitBooks uses controlled operators to generate it.

Operators generate evidence. They do not decide fit.

Operators

Evaluator contract: This evaluator assesses survivability under real cash timing. Forecasts and intentions do not change scoring.

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