Burn

Burn measures the change in a company’s cash balance over a period, not including cash received from financing activities.

Burn=current cash balance—previous period's ending cashing balance—cash from financing

Cash is king, and burn measures of much a company is consuming. There are many reasons why burn may diverge from GAAP net income. For example, annual contracts with upfront payments create positive cash flow cycles, while loan products create negative ones. Analyzing burn reveals these cash flow patterns and helps companies ensure they have the reserves they need to survive.

Settings: Segments, Date Range, Date Aggregation, Revenue Type, Trailing Period, Expense Segments

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