Ballard Power Struggles Amid Cash Burn Concerns

Cash Burn Remains a Focus

Ballard Power Systems (NASDAQ: BLDP), a leading provider of fuel cell technology, is facing ongoing challenges with cash burn, despite its long history in the industry. As the company awaits a potential inflection point in orders, it is prioritizing minimizing its cash burn rate.

Significant Cash Burn

Last year alone, Ballard reported a cash burn of US$146 million, representing a staggering 17% of its market value. As of September 2021, the company had US$12 billion in cash and no debt, but it subsequently burnt through US$68 million over the past year.

Importance of Cash Management

The company's cash burn rate is a crucial concern in the current market environment. With a market capitalization of US$884 million, Ballard's cash burn represents a significant portion of its overall value. The company must carefully manage its cash resources to ensure it has sufficient liquidity to continue operating and invest in its technology.