What is true about cash burn rate?

Cash burn rate is a critical metric for startups and businesses, particularly those not yet profitable. Here's what's true about it:- It measures how quickly a company is spending its cash reserves- It's usually expressed as monthly or quarterly cash outflow- It helps determine a company's runway - how long until cash runs out- High burn rates aren't inherently bad if supporting rapid growth- Investors monitor it closely to assess financial sustainability- It can indicate whether a company needs additional funding soon- Reducing burn rate often involves cutting costs or increasing revenueEssentially, it's a vital health indicator showing whether a business is on track to become self-sustaining or will need continuous external funding to survive.