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 https://app.kopilot.io/app/expenses/cost-control