Cash burn 1 article

Cash burn is the rate at which a company consumes cash to fund operations, research, clinical programs and other expenses when cash outflows exceed operating inflows. For pre-revenue biotechnology companies, burn is a key indicator of how quickly existing liquidity is being used. The measure can be expressed over monthly, quarterly or annual periods and is closely connected to future financing needs, but it is distinct from accounting net loss because noncash expenses and working-capital changes affect the two measures differently.