Cash Burn

Cash burn

WHAT IS CASH BURN RATE?

Cash Burn rate is the rate at which a company is losing money, typically, the amount of money that the company loses in a month. Say a company spends Rs 500,000 in a month (this includes all costs – operating costs and the COGS which is the cost of making the product or service that it is selling) and earns a revenue of Rs 100,000 in the same period; then the cash burn rate for the company is Rs 400,000.… Read More