What is the relationship between burn rate and cash reserves for a young company that is not yet profitable? Companies witheitherhigh burn rates or low cash reserves have a longer time frame in which to seneratea positive cash flow Companies wtheitherlow burn rates or low cash reserves have a fonger time frame in which to generate a positive cash flow. Companies witheither low burn rates or high cash reserves have longes time frame in which to senerate a positive cash fiow. Companies witheither high bum rates orhigh cash reserves have a longer time frame inwhich to generate a positive cash flow