burn rate

[ burn-reyt ]

  1. 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.

  2. 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.

Origin of burn rate

First recorded in 1960–65; burn1 (in the sense “consume rapidly”) + rate1

Words Nearby burn rate

Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2024

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