In the surety underwriting business, we are forward looking. Bond decisions are based on a variety of factors including "The Four C's of Bonding" (Read Secret article #5). Surety capacity levels are determined and used as a guideline to administer the account. That all makes sense.However, the forward looking analysis makes assumptions - that may or may not be correct. If they are incorrect, the outcome could be devastating for the contractor and surety.In this article we will delve into an aspect of evaluation used extensively by investors, but not so much by bond underwriters. It is called the Burn Rate.Here is the internet definition:Burn rate is the rate at which a company is losing money. It is typically expressed in monthly terms. E.g., "the company's burn rate is currently $65,000 p...