ECONOMICS

Detailed explanation-1: -The gross burn rate is simply the total amount of money spent each month. The net burn rate is the amount of money lost each month and takes into account any possible company revenue. It is calculated using the following formula: (Monthly Revenue-Cost of Goods Sold)-Gross Burn Rate = Net Burn Rate.

Detailed explanation-2: -1. Proposed Burn Rate (PBR) = BPHS/BPCS, or the Budgeted Person Hours Scheduled divided by the Budgeted Percentage of Completion Scheduled.

Detailed explanation-3: -The burn rate is a measure related to how fast a company spends its available supply of cash. If companies burn cash too fast, they risk running out of money and going out of business. If a company doesn’t burn enough cash, it might not be investing in its future and may fall behind the competition.

Detailed explanation-4: -What is the difference between run rate vs. burn rate? While run rate uses available data to estimate a company’s annual revenue, burn rate measures negative cash flow. It achieves this by calculating how a new company spends its venture capital on financing overhead before generating profits from operations.