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Cash burn rate

What is a cash burn rate?

A cash burn rate is a measure of how quickly a company uses up its cash reserves in its operations. This is especially important for startups and other companies that may not yet be profitable.

The cash burn rate is typically expressed as a monthly or weekly figure, indicating how much cash the company expects to spend over that period. It helps assess the company's financial health and sustainability, and it is used to determine when a company will need additional funding. A company can reduce its cash burn rate by increasing income or decreasing costs.

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