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

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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 27 Sep. 2022.

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