Cash Glossary

Browse 6 cash terms defined in plain English, from the cultural dictionary of computing.

6 Cash Terms

Burn Down: To spend down cash reserves over time, often used in discussions of monthly burn and runway. The phrase is especially common when boards evaluate how fast a...
Dry Powder: Cash reserves available for future deployment, often used for investors who still have capital to invest or companies that preserved spending capacity. The...
Free Cash Flow: Cash generated by the business after operating expenses and capital expenditures, showing what remains available for reinvestment, debt service, or...
Gross Burn: The total amount of cash a company spends in a period before subtracting incoming revenue. It is often contrasted with net burn, which accounts for revenue...
Monthly Burn: The amount of cash a company spends in a typical month, often used to estimate runway and financing urgency. Teams sometimes mean gross burn and sometimes net...
Net Burn: The net amount of cash a company loses in a period after accounting for revenue or other operating inflows. Net burn is often more useful than gross burn for...