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How much money you keep from every dollar spent on making and selling the product. This evaluates a company’s operating expenses.It is calculated by summing all its operating expenses such as rent, salaries, and other overhead, and is often measured on a monthly basis. It also provides insight into a company’s cost drivers and efficiency, regardless of revenue. [1]
[1] Corporate Finance Institute. Retrieved May 21, 2021, from https://corporatefinanceinstitute.com/resources/knowledge/modeling/burn-rate/
[2] Retrieved May 21, 2021, from https://www.thebalancesmb.com/what-does-burn-rate-mean-and-how-is-it-calculated-393196