How Long Does Ziff Davis Have Before It Runs Out of Cash?

On December 31, 2006, Ziff Davis had $15.4 million in cash/cash equivalents.  After borrowing $20 million on February 15, the company has $22.2 million in cash/cash equivalents as of March 31, the close of the first quarter.

I’m not a financial guy, but I can do basic math.  If you add the $20 million they borrowed with the $15.4 million they had at year end 2006, they should have at least $35.4 million at the end of Q1…that is, if they didn’t need to burn through any cash to continue to run the business.  We’re looking at a gap here of $13.2 million.  

If current trends continue–a hypothetical if there ever was one, let’s say for safety’s sake–and Ziff Davis doesn’t borrow any more money, they should run out of cash some time in the middle of Q3.

When you run out of cash, you’re out of business.