Burn Rate is a phrase commonly used in the business world to describe the speed at which a company’s cash resources are used up or “burned” over a given period of time. It is an important measure of financial performance, as it can help indicate whether or not a company has resources to sustain ongoing operations. As such, businesses should aim to keep their burn rate low by ensuring the amount spent during any given period is lower than the income generated. Burn rates can be expressed in either absolute amounts (e.g., dollar values) or percentages (e.g., percentage of total investments). Ultimately, understanding and controlling burn rate is key to ensuring long-term success.