Cash burn multiple – it sounds complicated, but it’s actually pretty simple. In short, it’s the amount of cash you need to spend in order to generate a certain level of revenue. It’s usually calculated as total operating expenses divided by total gross revenue. In other words, cash burn multiple is an important indicator of a business’ success and sustainability; the higher the cash burn multiple, the more cash your business needs to invest in order to stay afloat. By keeping an eye on this metric, businesses can get a better idea of where their resources should be allocated.