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burn rate
[ burn reyt ]
noun
, Business.
- Also called net burn rate [net, , burn, reyt]. 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]. 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.
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Word History and Origins
Origin of burn rate1
First recorded in 1960–65; burn 1 (in the sense “consume rapidly”) + rate 1( def )
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Example Sentences
And with the unconventional challenges of this race, the burn rate—of both cash and people—must be enormous.
From The Daily Beast
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