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

See more words from the same year

Cite this Entry

Style

“Burn rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/burn%20rate. Accessed 27 Sep. 2022.

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