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

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