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Burn Multiple is a measure of capital efficiency, comparing how much ARR a company adds in a period versus how much cash was lost (burned).

For quarterly and annual aggregation, revenue and costs in the numerator use the sum of all months in the period. For the ARR calculation in the denominator, the last month of the period is used.

If a company is profitable in a period, the Burn Multiple will be negative. If ARR does not increase in a period, a value for Burn Multiple will not be returned.