The cash
on cash return figure completely neglects this very important benefit of investment real estate.
Not exact matches
As
Figure 1 shows, the 30 companies with the most
cash stashed overseas earn a much higher
return on invested capital (ROIC) than the rest of the S&P 500.
The key criteria for a stock to
figure in bellwether indices are its free float, market capitalisation and impact costs, not the company's
return on equity,
cash flows or earnings growth.
He tries to
figure out in a broad way what an investment might
return in terms price paid for the investment and what «owner earnings,» that is, free
cash flow, it will generate
on a conservative basis.
My expensive homes earn lower annual
returns based solely
on current
cash flow, but when I
figure in underlying appreciation and ease of management its not even close, the expensive home clearly prevail over time.
I think
cash on cash return is a great metric to use to evaluate a potential deal because it is quick and easy allowing you to
figure out the potential
return of an investment in no time at all.