burn rate

noun

: the rate at which someone or something (such as a corporation) uses up available funds
We had incorporation documents, employment contracts, nondisclosure agreements, and a stock-option plan. Since only one guy was drawing a salary, I thought I could manage our burn rate for a while, but I was feeling a growing sense of urgency.Charles H. Ferguson, Fast Company, October 1999
The company has $89 million in cash and short-term investments as of January, giving it many years of a cushion even at its annual cash burn rate.Matt Krantz, USA Today, 18 Mar. 2013

Word History

First Known Use

1984, in the meaning defined above

Time Traveler
The first known use of burn rate was in 1984

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Cite this Entry

“Burn rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/burn%20rate. Accessed 13 Apr. 2024.

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