Cash Burn Rate Analysis | Calculate Cash Burn

In this video, we look at what is Cash Burn? Here do also do Cash burn analysis and calculate cash burn for SNAP Inc
𝐖𝐡𝐚𝐭 𝐢𝐬 𝐂𝐚𝐬𝐡 𝐁𝐮𝐫𝐧 𝐑𝐚𝐭𝐞?
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If the company is not able to generate enough cash to match its cash outflows, then the company loses cash. This is called as cash burn.
And the rate at which cash is spent each month can be called as "cash burn rate".
𝐂𝐚𝐬𝐡 𝐁𝐮𝐫𝐧 𝐑𝐚𝐭𝐞 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧
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For calculating cash burn rate, we need the opening cash balance and the closing cash balances.
Lets assume that Opening cash balance is $20,000
Closing cash balance after 3 months is $11,000
This means that there has been a cash outflow of $20,000 - $11,000 = $9000
Cash Burn Rate each month = $9000/3 = $3000 per month.
In this cash burn analysis video, you will also see how Cash Burn Rate of Snap Inc is $157 million per month!
For more details, please have a look at this detailed article on 𝐂𝐚𝐬𝐡 𝐁𝐮𝐫𝐧 𝐑𝐚𝐭𝐞 - www.wallstreetmojo.com/cash-b...
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[@kavithajayaprakash8202]

Concepts are pretty easy to understand. Very helpful.

[@alissapeterson7856]

Very well explained! Thank you!

[@nickbrown7650]

Very helpful and easy to understand.

[@geraldklein2015]

very well explained.

[@kurthammond8338]

Really good explanation of the topic.

[@shrirambharathwaj2906]

Very Informative video..thnks

[@cindylendon7403]

Well explained.