In corporate finance and startup terminology, "runway" refers to the length of time—usually measured in months—that a company can continue operating before it completely exhausts its available cash reserves and runs out of money. It is calculated by dividing total current liquid cash and cash equivalents by the company's net monthly burn rate. Maintaining a healthy financial runway is vital for early-stage enterprises, biotechs, and growing corporations to fund ongoing operations, product development, and scaling initiatives without facing sudden liquidity crises.