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Term: Accounting -> Burn Rate
Term:

Burn Rate

Definition:

The rate at which a company spends its money. Example: if a company had cash reserves of $120m and it was currently spending $10m a month, then you could say that at the current 'burn rate' the company will run out of cash in 1 year.

Related terms:

Paid in Capital

Net realizable value of accounts receivable

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