Net Cash Burn
The Net Cash Burn KPI refers to the amount of money by which cash decreases in a set period.
- Measures how quickly your business is spending money (net-negative cash flow)
- If your Cash on Hand increases in a period your Net Cash Burn is negative (because you generate money)
|Cash infolws (e.g. revenues) and cash outflows (e.g. costs)||Unusual positive cash flows such as received investments|
|CoH at beginning of period|
|– CoH at end of period|
|= Net Cash Burn|