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.
Who is it for?
Categories
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