How Mach7 Technologies (ASX:M7T) Uses Its Cash Hoard To Grow
Mach7 Technologies' ability to sustainably grow its business is crucial for investors, as it will determine whether their investments will yield long-term returns or result in significant losses. The company's recent revenue growth, despite being unprofitable, has shown promise, and analysts are optimistic about its future prospects. However, concerns remain about the company's reliance on cash reserves and the potential need to raise capital through new share issues.
- The key question for Mach7 Technologies is whether it can strike a balance between growth and sustainability, avoiding the pitfalls of companies that burn through their cash reserves without generating sufficient revenue.
- What are the potential risks associated with relying heavily on debt financing or issuing new shares to fuel growth, and how might these impact shareholders' returns?