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What is the difference?

Net Burn vs Cash Out Date

Net Burn

Out of Cash Date

What is it?

Net Burn is the amount a company is losing per month as they burn through their cash reserves. It occurs when a company’s operating costs are higher than their revenue. A company that is profitable and generating cash has a "negative Net Burn".

Out of Cash Date gives you a rough estimate of when you will be out of cash. This metric is most often expressed as the number of months before Cash Out. This is a useful metric for CEOs and CFOs who are managing companies that are not profitable yet.

Formula

ƒ (Operating Expenses - Gross Margin)
ƒ (Cash) / (Net Burn)

Track this metric

Xero Net Burn

QuickBooks Net Burn

Net Burn (Custom data source)

Out of Cash Date (Custom data source)

Published and updated dates

Date created: Feb 16, 2019

Latest update: Mar 15, 2021

Date created: Feb 14, 2019

Latest update: Sep 27, 2019