Cash Burn Rate
Cash Burn Rate: Net cash consumed per month.
Formula
Burn Rate = (Cash at start of period - Cash at end of period) / Months in periodWhat It Tells You
How fast cash is being consumed.
Related Metrics
Connected in the GASP relationship graph.
Downstream: what this drives
- Cash Burn Rate reduces Free Cash Flow (Finance)
- Cash Burn Rate measures Invoice (Entity)