30-Day and 13-Week Operating Cash Burn

What is 30-Day and 13-Week Operating Cash Burn?

30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit.

The standard burn rate formula is as follows:

30-day and 13-week operating cash burn = [(starting balance of 13-week period - ending balance of 13-week period)/3] x 3.25

Cash burns don’t always point to a failing business; instead, this situation can result from anticipated seasonal trends or other factors that aren’t necessarily red flags. However, a company should always keep a close eye on its financial situation during periods of cash burn.

Related terms

30-Day and 13-Week Operating Cash Burn

30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit.

Accounts Payable Days

Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.

Accounts Payable Turnover

Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.

Accounts Receivable Turnover

The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.

Advanced Reporting

Advanced reporting refers to a sophisticated approach to generating and analyzing reports using advanced tools, techniques, and technologies.

Annual Recurring Revenue (ARR)

Annual Recurring Revenue (ARR) is a key metric used by subscription-based businesses to track and measure their predictable, recurring revenue streams over a one-year period.