burn rate

USAGE SUMMARY

'burn rate' is a correct and commonly used phrase in written English.
You can use it to describe the speed at which a company is using its resources or going through its budget. For example, "The company was spending too much, so they had to reduce their burn rate to stay afloat."

✓ Grammatically correct

News & Media

Academia

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

54 human-written examples

Something else Neistat authentically shared onstage was Beme's raise and burn rate — $6.6 million in funding, with a burn rate of $180,000 per month.

TechCrunch

Take "high burn rate", for example.

The Times

"The burn rate was alarming," Rawley told me.

The New Yorker

Burn rate, of course, refers to money up in smoke.

The New York Times

The monthly amount is called the "burn rate".

The Guardian - Tech

The company was not making money yet and had a high cash burn rate, he said.

Cornell University

Human-verified similar examples from authoritative sources

Similar Expressions

6 human-written examples

Some of these result from high fuel burn rates, Mr. Wack said.

The New York Times

Héon, J., Arseneault, D. & Parisien, M. A. Resistance of the boreal forest to high burn rates.

Nature

Startups with huge burn rates — building leases, staff, PR and advertising — ran out of money.

Harvard Business Review

They have high burn rates, in other words.

TechCrunch

The company told TechCrunch that it has 12 months of capital at current burn rates.

TechCrunch

Expert writing Tips

Best practice

When discussing the financial health of a startup or project, use the term "burn rate" to clearly indicate the rate at which it is spending capital.

Common error

Don't confuse "burn rate" with revenue or profit. Burn rate refers specifically to the rate of spending, not income. Always clarify whether you're discussing how much a company spends or how much it earns.

Linguistic Context

The phrase "burn rate" functions as a noun phrase, typically used as a subject or object in a sentence. According to Ludwig, it describes the speed at which a resource, especially cash, is consumed. Examples from Ludwig illustrate its use in discussing a company's financial health.

Expression frequency: Very common

Frequent in

News & Media

50%

Formal & Business

25%

Academia

15%

Less common in

Science

5%

Wiki

3%

Reference

2%

Ludwig's WRAP-UP

The phrase "burn rate" is a commonly used term, particularly in business and finance, to describe the rate at which a company spends its cash reserves. Ludwig confirms its grammatical correctness and provides numerous examples of its usage in contexts ranging from startups to political campaigns. The term is most frequently found in news and media sources, as well as in formal business and academic settings. Keeping a close eye on the "burn rate" is essential for assessing the financial health and sustainability of an organization. Furthermore, avoid confusing it with revenue, focusing on its specific meaning as the rate of expenditure.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

cash consumption rate

Focuses specifically on cash, highlighting the financial aspect of resource usage.

cash outflow rate

Highlights the movement of cash out of a business.

spending rate

A broader term emphasizing expenditure without specifying the type of resource.

resource depletion rate

Emphasizes the gradual exhaustion of resources over time.

rate of expenditure

A formal way to describe how quickly money is spent.

monthly expenses

Focuses on the amount of money spent within a month.

capital utilization rate

Emphasizes the employment of capital.

operating costs

Highlights the costs involved in running a company or project.

monetary attrition

A more dramatic phrase, suggesting a wearing away of funds.

deficit spending pace

Highlights how quickly deficit occurs while spending.

FAQs

How is "burn rate" typically calculated?

Typically, "burn rate" is calculated on a monthly basis by subtracting total revenue from total expenses. The resulting number indicates how much cash a company is using each month.

What does a high "burn rate" indicate?

A high "burn rate" typically indicates that a company is spending a significant amount of money each month. This can be sustainable if the company is growing rapidly and has sufficient funding, but it can be problematic if the company is not generating enough revenue to offset the expenses.

What's the difference between "gross burn rate" and "net burn rate"?

"Gross burn rate" refers to the total amount of money a company spends each month, while "net burn rate" accounts for any revenue generated during that period. Net burn rate provides a more accurate picture of how quickly a company is depleting its cash reserves.

What are some strategies for reducing "burn rate"?

Strategies for reducing "burn rate" include cutting expenses, increasing revenue, and securing additional funding. Specific tactics may include reducing marketing spend, renegotiating contracts with vendors, and focusing on profitable products or services.