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Cost Control | Know your burning rate#91

Burning rate is the expense-to-sales ratio. It is a critical measure to ensure your activities generates more cash than they need.

We just delivered the answers to the questions below:

  • What is the percentage of your sales that are kept by your expenses?
  • Where does the burning rate deviation comes from? Sales or Expenses side?
  • How does the burning rate evolve over time?

Above the breakeven line, you are burning cash.
Below the breakeven line, you are making cash.

Check the answer on

3 months ago
Changed the status to
3 months ago