Which of the following statements is TRUE regarding cash metric-based analysis? Beyond the time period indicated by the ratio of cash to monthly cash expenses, a company would always report a net loss on its income statement. Including cash equivalents in the calculation of the ratio of cash to monthly cash expenses typically reduces the ratio. For purposes of cash metric-based analysis, the monthly cash expenses are calculated by taking total cash expenses reported on the income statement and dividing by 12. If a company reports positive cash flows from operating activities, it is said to have a monthly cash burn. The ratio of cash to monthly cash expenses indicates how long a company could operate on its available cash.