Reading a balance sheet like a hiring manager
Three lines on any company's balance sheet tell you what its hiring runway probably looks like for the next two quarters.
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What candidates miss
When you're considering a role, you read Glassdoor. Smart candidates also read the latest investor deck or annual report. Here's what to look at — and what to ignore.
The three lines
- Cash and equivalents — what's the runway in their reported burn rate? More cash, less anxiety.
- Total debt — especially short-term debt. A spike often signals stress.
- Operating cash flow — positive and trending up is the green flag people forget to look for.
Things to ignore in this exercise
- Headline revenue growth — it tells you the past, not the future runway.
- EBITDA — useful for some questions, but it's not cash. Don't confuse the two.
- Goodwill changes — interesting later, irrelevant for "will they keep hiring."
Use it on yourself
If you're considering an offer, this 10-minute pass will tell you whether the company you're joining can afford the bet they're making on you. It's not the whole picture — but it's a free, public part of it.
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