Also called net burn rate [net-burn-reyt] /ˈnɛt ˈbɜrn ˌreɪt/ . the negative cash flow for an enterprise, calculated as the monthly sum of revenue minus operating expenses: Investors aren’t concerned about the company’s high burn rate since its growth is also explosive.
Also called gross burn rate [grohs-burn-reyt] /ˈgroʊs ˈbɜrn ˌreɪt/ . the operating expenses of an enterprise, sometimes presented as the length of time a startup investment will last without additional income if the monthly operating expenses remain the same: At the current burn rate, the company can fund two more quarters before it’s forced to seek fresh sources of cash inflow.
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2024
How to use burn rate in a sentence
And with the unconventional challenges of this race, the burn rate—of both cash and people—must be enormous.Mark McKinnon’s Memo to Romney Staffers: These Dark Days Will Pass | Mark McKinnon | March 17, 2012 | THE DAILY BEAST