What is Cash Burn?
Cash Burn The rate at which a company expends its cash reserves, typically expressed as a monthly or quarterly amount, commonly used to assess sustainability of loss-making or high-growth firms.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Cash Burn” Used in Practice?
Startups closely monitor cash burn to estimate how many months of operations remain before requiring additional funding.
Certification Exam Relevance
Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
Learn “Cash Burn” Free with Termify
Master Cash Burn and 4,071+ professional terms with native pronunciation, IPA transcriptions and career quizzes. 100% free, forever.
Download Free for iOSFrequently Asked Questions
What is Cash Burn?
The rate at which a company expends its cash reserves, typically expressed as a monthly or quarterly amount, commonly used to assess sustainability of loss-making or high-growth firms.
Where can I learn this term for free?
Termify is a 100% free professional English app that teaches Cash Burn and 4,071+ other industry terms with native pronunciation, IPA transcriptions and career quizzes. Available on iOS in 23 languages. No subscription, no credit card required.
Last updated: