What is Cash Burn Rate?
Cash burn rate is the amount of cash flowing out of the business over a given period of time.
If cash flow burn is positive, then the amount of cash after allowing for revenue received and expenses paid will increase.
If cash flow burn is negative, then the amount of cash flow after allowing for revenue received and expenses paid, will decrease.
It can also be used to evalauate the mount of cash required to sustain the business in event of business downturn or cessation of business.
Remember cash is king!