You should be able to get a nice house with
a much higher cash flow than this one.
Not exact matches
Most companies experience
cash flow challenges within the first few years of operation and, for a large percentage of those businesses, the obstacle of
high operating expenses and compounding debt proves to be too
much -LSB-...]
Most companies experience
cash flow challenges within the first few years of operation and, for a large percentage of those businesses, the obstacle of
high operating expenses and compounding debt proves to be too
much to handle.
For example, if you compared 2007 to 2011, when DuPont had
cash flow of $ 5.8 billion, you would get a
much higher return on investment, something like 13 % after taxes.
Industries such as software, on the other hand, allow for
much higher price to
cash flow ratios because they have very low capital requirements.
Throughout the past decade, there is a
high correlation between how expensive GE's stock is versus current
cash flows and how
much stock the company repurchases.
The company maintains a fairly
high payout ratio as it returns
much of its
cash flows to shareholders in the form of dividends.
Most value stocks have low price - to - earnings (P / E) ratios,
high dividend yields, low price - to -
cash -
flow ratios, and stocks with a market value (generally, the stock price) that is lower than the book value (how
much the company's net assets are worth).
It has a
much higher dividend yield of 4.2 %, and, like UGI, it has delivered positive free
cash flow for three consecutive years.
There are three reasons why STORE benefits so
much from this
high percentage of retained
cash flow.
We do nt sell
high and buy low like some teams do — Even Chelsea is
much better at managing their
cash flow in the last few years than us.
Companies in defensive industries, such as utilities, pipelines, and telecommunications, have stable and predictable earnings and
cash flows, and thus can support
much higher payouts than cyclical companies.
The other positive is that Tom and Mary recognize that using capital gains and return of capital to cover
cash flow needs is usually
much more tax beneficial than trying to boost income by having
higher investment yields.
Closed end income fund prices are still well below the levels they commanded when interest rates were
much higher, yet they provide the same
cash flow as before the financial crises.
Much as we like the flexibility of dividends, our
cash flow is more than sufficient, and can handle a
higher payout.
While this isn't a bad thing, it's
much harder to earn a
high return via capital appreciation versus regular
cash flow payments.
It is invested primarily in the credit market, not so
much in government bonds because government bond yields are so low, but we're looking for absolute returns even if interest rates go up, so some of the portfolio, a significant piece of it actually, is floating rate, so if interest rates go up, you just get
higher cash flows, which will support
higher returns, and the rest of the portfolio is in relatively short maturity bonds, which will have some price volatility and if there's bad market conditions, will have temporary losses, so the goal is to offer something that is absolute returns.
As well, look at free
cash flow, how
much debt a company is carrying — a debt - to - EBITDA ratio of three times is getting
high, says Gibbs — and how they're spending their money.
It looked dumb on current performance, but if you look at investing as a business asking what level of surplus
cash flows the underlying investments will throw off, it was an easy choice, because bonds were offering a
much higher future yield than stocks.
Outerwall has historically produced
high returns on capital, and it's a business that doesn't need
much tangible capital to produce huge amounts of
cash flow (an attractive business), but it has been run similar to companies that get purchased by private equity firms — leverage up the balance sheet, issue a dividend (or buyout some shareholders), thus keeping very little equity «at risk».
Shares issuance will dilute current investors while too
much debt means
higher rates and less distributable
cash flow after interest expense.
Sellers sometimes act improperly by misstating the true revenues of the business to get the
highest possible price by misleading the buyer into thinking that the business yields
much greater
cash flow than is the truth.
I may need the
cash flow later in which case it will be
much higher when properties are paid off, or I will sell the properties and bring back the
cash from the equity.
Note in reality I am likely underselling the «
cash flow» of the class A property because to produce 1.3 X on an assumed
much higher purchase price it would produce better than the same «
cash flow» as the C property (otherwise it would not have achieved 1.3 X).
Furthermore, there are certain areas of my market where I know taxes are
much higher and therefore even the 1 % rule doesn't work... it usually has to be a 1.5 % - 2 % property to offset the
high taxes and still
cash flow.
The Ca properties will likely make more over the short term and even perhaps over the long term, but their price volatility is
much higher than the Midwest properties and the annual
cash flow much more modest based either FMV or historical cost.
However, we invest in Waterloo, Iowa which is a low to middle income area and our strategy is based on the
highest cash flow possible, but we know our properties are not going to appreciate
much.
You'll also have a
much better chance for
higher appreciation, which is the real wealth builder, not the $ 100 / mo
cash flow.
Prescott Capital invests on behalf of
high - net - worth individuals who emphasize
cash flow as
much as, or more than, price appreciation, says Susan Stupin, a managing director at Prescott Capital.
Some of the specific tweaks I did to achieve
much higher than expected results (note that these do come with risks): — Instead of 30 yr fixed, I went with 5 yr ARM loans allowing minimum payment: This allowed me to get financing at 2.5 % and improving
cash flow quite a bit.
These are considered the bread and butter for rentals, with
higher cash flow and CAP rates, but normally
much lower appreciation.