Rate at which appropriations have been expended against an award. A 12-month rolling total of available balance may be used to calculate this rate. This rate is frequently used in projecting when funding will run out. It can also be used as a benchmark to compare against actual expenditures in the future.
The rate at which the company consumes cash, usually expressed on a monthly basis. This is an important quantitative measurement because it can reflect the company's fiscal perspective. If the company is creative, conserves its limited funds, outsources when it can, gets competitive bids on services, then investors may feel more comfortable that the company will use investor dollars wisely. In the hey-day of the dot-com, founders ensured they were paid and rewarded before many other critical things for the business development happened. This is no longer acceptable.
The rate at which a company (not yet making a profit) is going through its available money (which may come from angel investors, venture capital and other sources).. Generally expressed in cash spent per month.
The rate at which a company spends its money. Example: if a company had cash reserves of $120m and it was currently spending $10m a month, then you could say that at the current 'burn rate' the company will run out of cash in 1 year. · · · · · · · · · · · · · · · · · · · · · · · · · · HOME
The rate at which cash is used up in a venture, usually expressed on a monthly or weekly basis. . Cash and financing divided by burn rate equals how long the business can continue to be financed by its existing resources.
The rate at which a new company or venture spends its capital while waiting for profitability. Most Internet start-up companies are will acquainted with this term, which is widely used in an industry where money is routinely spent much faster than it is earned.
Burn rate is a synonymous term for negative cash flow. It is a measure for how fast a company will use up its shareholder capital. If the shareholder capital is exhausted, the company will either have to find additional funding or close down.