cash burn

USAGE SUMMARY

"cash burn" is correct and usable in written English.
It is generally used to refer to the rate at which a company spends its money, usually as a result of high operating costs. For example, "The company's high cash burn rate is putting the future of its operations in jeopardy."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

32 human-written examples

Cash burn is now a real prospect.

The Guardian - Business

"Like any start-up, Piano has a high cash burn rate right now.

The New York Times

The company said it expected its "cash burn" to decline in the third quarter.

The New York Times

The company, whose software can track internet users' surfing habits, has trimmed its monthly cash burn to $1.8m.

The Guardian - Business

"The cash burn is greater than anticipated," said Carol Coale, an analyst with Prudential Securities in Houston.

The New York Times

"Cash burn is a critical issue for us and it is not a metric we ignored," he said.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

27 human-written examples

If the company starts the month with $100,000 in cash and ends the month with $90,000 in cash, its burn rate is $10,000.

TechCrunch

Just because Google has cash to burn doesn't mean it should use that cash to try to buy market share.

TechCrunch

Already some farmers are watching their cash crops burn to the point of no return.

The New York Times - Science

"Rather than just giving companies cash to burn, it does keep people employed and stimulates demand".

The New York Times

Executives with cash to burn traditionally hire luxury yachts, secluded villas or expensive hotel suites to impress clients.

The Guardian

Expert writing Tips

Best practice

When discussing financial performance, quantify "cash burn" with specific figures (e.g., monthly or quarterly) to provide a clearer picture of the rate at which a company is spending its cash reserves.

Common error

Don't assume that low "cash burn" automatically means profitability. A company can have low spending but still operate at a loss due to insufficient revenue.

Linguistic Context

The phrase "cash burn" functions as a noun phrase that describes the rate at which a company spends its cash reserves, often during a period of unprofitability or high investment. Ludwig AI indicates that this phrase is correct and usable in written English.

Expression frequency: Common

Frequent in

News & Media

67%

Formal & Business

27%

Science

6%

Less common in

Encyclopedias

0%

Wiki

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "cash burn" is a noun phrase commonly used to describe the rate at which a company expends its cash reserves, particularly when expenses exceed income. According to Ludwig AI, the phrase is considered grammatically correct and suitable for use in writing. It's most frequently encountered in news and business contexts. When using the term, it's best practice to quantify the rate with specific figures to provide a clear understanding. While "cash burn" is related to concepts like "financial drain" and "rate of expenditure", it shouldn't be confused with profitability, as a low "cash burn" doesn't guarantee a profitable business. Understanding "cash burn" is crucial for investors to assess a company's financial stability. Top sources for examples include The New York Times, Forbes, and TechCrunch.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Rate of expenditure

Focuses on the speed at which money is spent, similar to "cash burn".

Capital depletion

Emphasizes the reduction of capital resources, a core aspect of "cash burn".

Outflow of funds

Highlights the movement of money out of a company, related to "cash burn".

Spending rate

A general term for how quickly money is being spent, akin to "cash burn".

Resource consumption

Focuses on the use of resources, including cash, by a company, like "cash burn".

Deficit spending

Highlights that the company spends more money than its incoming revenues.

Operating losses

Refers to money lost through business operations, a potential cause of "cash burn".

Financial drain

Emphasizes the continuous loss of money, comparable to "cash burn".

Liquidity erosion

Highlights the gradual diminishing of a company's liquid assets, closely tied to "cash burn".

Cash outflow

A simple way of describing money leaving the company, equivalent to an aspect of "cash burn".

FAQs

How to use "cash burn" in a sentence?

You can use "cash burn" to describe a company's rate of spending, as in, "The startup's high "cash burn" rate is a concern for investors."

What's a simpler way to describe "cash burn"?

Alternatives include "rate of expenditure", "spending rate", or "financial drain".

Is "cash burn rate" the same as "cash flow"?

No, "cash burn rate" refers to the rate at which a company is spending its money, while "cash flow" refers to the movement of money both into and out of a company.

Why is understanding "cash burn" important for investors?

Understanding "cash burn" helps investors assess a company's financial stability and runway, indicating how long it can sustain operations before needing additional funding.