Calculating a Firm’s Cash Burn Rate

As of this writing, we are still in the midst of a bull run that is over five years old. Recent market volatility has some wondering how much steam remains in it, but as of the close on August 8, the S&P 500 index was only 2.8% off its high since the market bottom of March 2009, and the NASDAQ Composite was only 2.6% off its high. Between the market low of March 9, 2009, and August 8, 2014, the S&P 500 index gained 193.8% while the NASDAQ Composite was up 253.6%.

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