Because an enterprise does not make money, the stock does not decrease. For example, for years before success with new treatments or discoveries of mineral, biotech and mining exploration companies often lose their money. But, although the accomplishments are well-known, investors cannot ignore the many unrentable companies that simply burn their cash and collapse.

Should the shareholders of C3.ai (NYSE:AI) worry about their cash burn then? We will determine cash burn for the purposes of this article, as the sum the company spends every year to finance its growth (also called its negative free cash flow). Let’s start by examining the cash of the company in respect of its cash burn.