Situation 1: Invest in a market where it's likely to get cash
on cash returns of 12 %, but the market the property is located in hasn't appreciated at all over the last 5 years
We are currently franchising our Old Chicago brand which is seeing industry leading results: 11 + Quarters of positive comp sales, 35 % -40 % beverage mix, new 5000 sq. ft. prototype build - out of ~ $ 1.8 M and Cash
on Cash returns of 35.3 %, Avg unit volume: $ 2.8 M
b) Return on Invested Capital (ROIC) measures the aggregate cash
on cash returns of all stocks in the sector / industry.
I invest in GR (primarily buy and hold) and I won't write an offer on a property unless I think I can get a cash
on cash return of 15 % + with the property also being located in one of the better, up and coming neighborhoods.
Not exact matches
Important factors that could cause actual results to differ materially from those reflected in such forward - looking statements and that should be considered in evaluating our outlook include, but are not limited to, the following: 1) our ability to continue to grow our business and execute our growth strategy, including the timing, execution, and profitability
of new and maturing programs; 2) our ability to perform our obligations under our new and maturing commercial, business aircraft, and military development programs, and the related recurring production; 3) our ability to accurately estimate and manage performance, cost, and revenue under our contracts, including our ability to achieve certain cost reductions with respect to the B787 program; 4) margin pressures and the potential for additional forward losses
on new and maturing programs; 5) our ability to accommodate, and the cost
of accommodating, announced increases in the build rates
of certain aircraft; 6) the effect
on aircraft demand and build rates
of changing customer preferences for business aircraft, including the effect
of global economic conditions
on the business aircraft market and expanding conflicts or political unrest in the Middle East or Asia; 7) customer cancellations or deferrals as a result
of global economic uncertainty or otherwise; 8) the effect
of economic conditions in the industries and markets in which we operate in the U.S. and globally and any changes therein, including fluctuations in foreign currency exchange rates; 9) the success and timely execution
of key milestones such as the receipt
of necessary regulatory approvals, including our ability to obtain in a timely fashion any required regulatory or other third party approvals for the consummation
of our announced acquisition
of Asco, and customer adherence to their announced schedules; 10) our ability to successfully negotiate, or re-negotiate, future pricing under our supply agreements with Boeing and our other customers; 11) our ability to enter into profitable supply arrangements with additional customers; 12) the ability
of all parties to satisfy their performance requirements under existing supply contracts with our two major customers, Boeing and Airbus, and other customers, and the risk
of nonpayment by such customers; 13) any adverse impact
on Boeing's and Airbus» production
of aircraft resulting from cancellations, deferrals, or reduced orders by their customers or from labor disputes, domestic or international hostilities, or acts
of terrorism; 14) any adverse impact
on the demand for air travel or our operations from the outbreak
of diseases or epidemic or pandemic outbreaks; 15) our ability to avoid or recover from cyber-based or other security attacks, information technology failures, or other disruptions; 16)
returns on pension plan assets and the impact
of future discount rate changes
on pension obligations; 17) our ability to borrow additional funds or refinance debt, including our ability to obtain the debt to finance the purchase price for our announced acquisition
of Asco
on favorable terms or at all; 18) competition from commercial aerospace original equipment manufacturers and other aerostructures suppliers; 19) the effect
of governmental laws, such as U.S. export control laws and U.S. and foreign anti-bribery laws such as the Foreign Corrupt Practices Act and the United Kingdom Bribery Act, and environmental laws and agency regulations, both in the U.S. and abroad; 20) the effect
of changes in tax law, such as the effect
of The Tax Cuts and Jobs Act (the «TCJA») that was enacted
on December 22, 2017, and changes to the interpretations
of or guidance related thereto, and the Company's ability to accurately calculate and estimate the effect
of such changes; 21) any reduction in our credit ratings; 22) our dependence
on our suppliers, as well as the cost and availability
of raw materials and purchased components; 23) our ability to recruit and retain a critical mass
of highly - skilled employees and our relationships with the unions representing many
of our employees; 24) spending by the U.S. and other governments
on defense; 25) the possibility that our
cash flows and our credit facility may not be adequate for our additional capital needs or for payment
of interest
on, and principal
of, our indebtedness; 26) our exposure under our revolving credit facility to higher interest payments should interest rates increase substantially; 27) the effectiveness
of any interest rate hedging programs; 28) the effectiveness
of our internal control over financial reporting; 29) the outcome or impact
of ongoing or future litigation, claims, and regulatory actions; 30) exposure to potential product liability and warranty claims; 31) our ability to effectively assess, manage and integrate acquisitions that we pursue, including our ability to successfully integrate the Asco business and generate synergies and other cost savings; 32) our ability to consummate our announced acquisition
of Asco in a timely matter while avoiding any unexpected costs, charges, expenses, adverse changes to business relationships and other business disruptions for ourselves and Asco as a result
of the acquisition; 33) our ability to continue selling certain receivables through our supplier financing program; 34) the risks
of doing business internationally, including fluctuations in foreign current exchange rates, impositions
of tariffs or embargoes, compliance with foreign laws, and domestic and foreign government policies; and 35) our ability to complete the proposed accelerated stock repurchase plan, among other things.
Competition for
cash has
returned with a vengeance, after the Fed stifled it in 2008 to keep the cost
of funding for banks to near zero so that they could maximize their profits in order to rebuild their capital after teetering
on the verge
of collapse.
For the payor, there's the question
of whether the settlement
cash is deductible
on his or her
return.
But Taihuttu's motivation is about more than just
cashing in
on a big
return; it's about taking part in a revolution that's transforming the world
of money.
The percentage
of respondents who said companies should repair their balance sheets is now
on par with the percentage who said companies should
return to
cash to shareholders.
In a note, analyst Michael Senno wrote that «as an owner
of sports cable networks and teams, we believe that MSG is well positioned to capitalize
on the increasing value
of premium sports content, which should result in AOCF and free
cash flow growth above its peers and, combined with incremental leverage, lead to solid shareholder
returns.»
Here's some more color
on returning cash to shareholders from Butters» note: «Share repurchase programs have become a very popular way
of returning capital to shareholders over the years.
Forking over a wad
of cash to promote the company might seem like the thing to do, but if your
return on your investment is next to nothing, it could kill your company.
But Exxon pays half its annual bonus in
cash immediately and in its proxy, it cited one - and five - year
return on average capital, current - year and five - year average earnings, and current - year as well as the ten - year average annual shareholder
returns as part
of the justification for its pay.
Instead, it has concentrated
on returning cash to shareholders through buybacks and dividends; earnings per share have risen nearly 40 % since the last quarter
of 2014, while the quarterly dividend is up 43 %.
For instance, over the past three years Berkshire had an average
return of 8.2 %
on the
cash it invested in its energy business.
The one element binding this diverse group
of investors together is that they receive some type
of equity or stock vehicle when they put money into a growth company; each group then has its own set
of goals in regard to how much
of an investment
return its members hope to earn
on that stock and how quickly they hope to earn it (usually when they
cash out during an initial public offering or in a merger or acquisition deal).
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.
The benefits: investors often get a higher rate
of return on their investment and the entrepreneur gets a much needed
cash infusion.
There are lots
of strategies for buying a company, and many focus
on cash flow and
return on investment, but today we look at an example that deals with overcoming everyday business problems.
A company that can consistently generate free
cash and produce
returns on invested capital above their cost
of capital is a good buy.
«The combined CSRA and GDIT offers innovative, competitive and compelling solutions to our customers, and provides attractive free
cash flow coupled with good incremental
return on capital for investors,» Phebe Novakovic, chairman and chief executive officer
of General Dynamics, said in a statement.
My
returns are based
on full
cash purchase
of the properties, as it is hard to compare the attractiveness
of properties at different price ranges when only calculating down payment or properties that need very little rehab / updates.
As much as $ 600,000 in
cash fell out
of a truck
on the highway — and police are asking people who took the money to
return it or be charged with theft
CBO's measure
of before - tax comprehensive income includes all
cash income (including non-taxable income not reported
on tax
returns, such as child support), taxes paid by businesses, [15] employees» contributions to 401 (k) retirement plans, and the estimated value
of in - kind income received from various sources (such as food stamps, Medicare and Medicaid, and employer - paid health insurance premiums).
Finally, we screen for
return on invested capital (ROIC), one
of the most widely - used factors, and free
cash flow yield.
The performance goals upon which the payment or vesting
of any Incentive Award (other than Options and stock appreciation rights) that is intended to qualify as Performance - Based Compensation depends shall relate to one or more
of the following Performance Measures: market price
of Capital Stock, earnings per share
of Capital Stock, income, net income or profit (before or after taxes), economic profit, operating income, operating margin, profit margin, gross margins,
return on equity or stockholder equity, total shareholder
return, market capitalization, enterprise value,
cash flow (including but not limited to operating
cash flow and free
cash flow),
cash position,
return on assets or net assets,
return on capital,
return on invested
«If you stash your
cash under a mattress, you miss out
on investing
returns, and compounding interest that allow those
returns to grow,» says financial expert Jacob Wade
of IHeartBudgets.net.
Although the long - term
returns on real estate are less than common stocks as a class (because an apartment building can't keep expanding), real estate can throw off large amounts
of cash relative to your investment.
Consider this simple example with a three - instrument portfolio comprised
of a S&P 500 ETF, a long - term bond ETF and a
cash - proxy ETF.1 Based
on daily
returns since 2010, the annualized volatility
on the
cash proxy (a short - term bond ETF) is effectively zero, compared to 16 % and 15 % for the stock and bond ETFs.
On this last point, for some institutions, the ON RRP is an imperfect substitute to lending in private unsecured markets because, in the tri-party repo system through which the ON RRP is settled, cash is not returned at maturity until late the next day, whereas in private unsecured markets, earlier return of funds can be negotiated.
On this last point, for some institutions, the
ON RRP is an imperfect substitute to lending in private unsecured markets because, in the tri-party repo system through which the ON RRP is settled, cash is not returned at maturity until late the next day, whereas in private unsecured markets, earlier return of funds can be negotiated.
ON RRP is an imperfect substitute to lending in private unsecured markets because, in the tri-party repo system through which the
ON RRP is settled, cash is not returned at maturity until late the next day, whereas in private unsecured markets, earlier return of funds can be negotiated.
ON RRP is settled,
cash is not
returned at maturity until late the next day, whereas in private unsecured markets, earlier
return of funds can be negotiated.39
Cash Flow Return on Invested Capital (CFROIC) is defined as consolidated cash flow from operating activities minus capital expenditures, the difference of which is divided by the difference between total assets and non-interest bearing current liabilit
Cash Flow
Return on Invested Capital (CFROIC) is defined as consolidated
cash flow from operating activities minus capital expenditures, the difference of which is divided by the difference between total assets and non-interest bearing current liabilit
cash flow from operating activities minus capital expenditures, the difference
of which is divided by the difference between total assets and non-interest bearing current liabilities.
So Absolute
Return is used the way most
of us would use bonds or
cash — and Swensen has his own position
on why bonds are quite risky investments... As for retail investors, AQR have funds like QSPIX which (so far) seem to fit Yale's criteria as well as anything
It is the true measure
of a company's
cash on cash returns.
Compared to other companies in the NYSE ARCA Gold Miners Index (GDM), Northern Star is a sector leader in a number
of factors, including five - year
cash flow
return on invested capital.
While stocks are riskier than bonds or
cash investments, they have much higher
returns over the long run and many issue dividends
on top
of this.
Under the Bonus Plan, our compensation committee, in its sole discretion, determines the performance goals applicable to awards, which goals may include, without limitation: attainment
of research and development milestones, sales bookings, business divestitures and acquisitions,
cash flow,
cash position, earnings (which may include any calculation
of earnings, including but not limited to earnings before interest and taxes, earnings before taxes, earnings before interest, taxes, depreciation and amortization and net earnings), earnings per share, net income, net profit, net sales, operating
cash flow, operating expenses, operating income, operating margin, overhead or other expense reduction, product defect measures, product release timelines, productivity, profit,
return on assets,
return on capital,
return on equity,
return on investment,
return on sales, revenue, revenue growth, sales results, sales growth, stock price, time to market, total stockholder
return, working capital, and individual objectives such as MBOs, peer reviews, or other subjective or objective criteria.
If at least 25 %
of all your spending is confined to the quarterly categories, the Discover it ® — Cashback Match ™ will actually have a better
return on your spend than a majority
of cash back credit cards.
Since when has the rate
of return on cash balances equaled interest charged
on loans.
Over the years, I've emphasized what I call the Iron Law
of Valuation: the every security is a claim
on an expected stream
of future
cash flows, and given that expected stream
of future
cash flows, the current price
of the security moves opposite to the expected future
return on that security.
That's twice the average 74 %
return for those who moved out
of stocks and into
cash during the fourth quarter
of 2008 or first quarter
of 2009.3 More than 25 %
of the investors who sold out
of stocks during that downturn never got back into the market — missing out
on all
of the recovery and gains
of the following years.
The Norwest Corporation Directors» Stock Deferral Plan, which prior to 1999 allowed directors
of the former Norwest Corporation to defer their annual
cash retainer and meeting fees and earn an investment
return based
on common stock share equivalents distributed in shares
of common stock.
For instance, a percentage
of GE executive bonuses depend
on the company
returning a certain amount
of cash to shareholders.
I only «count
on'the
cash on cash return and then any appreciation when the property sells is «gravy» to cover the overall risk... similar to you, I assume between 8 - 10 %, even though most
of the projected IRR's are around 14 - 16 + %.
Back in the mid 1990s, many academics and analysts highlighted the superiority
of cash on cash returns as drivers
of valuation.
FL currently earns a third - quintile 10 %
return on invested capital (ROIC) and has generated a cumulative $ 762 million (12 %
of market cap) in free
cash flow (FCF) over the past five years.
This is utterly different from true discounting - which does not rely
on multiples, but instead carefully traces out the likely path
of future revenues, profit margins,
cash flows and earnings over time, and explicitly discounts expected payouts and probable terminal values back at an appropriate rate
of return.
Financial risk: The potential for gain or loss
on a financial level measured in terms
of revenue,
return on investment,
return on equity, shareholder value, profitability, debt level, capital expenditures and free
cash flow.
The company's
cash on hand would allow it to
return capital while still investing in the development
of new products to drive future profit growth.
Every pension fund he studied is a monthly net seller
of assets in order to fund beneficiary payouts — i.e. the
cash contributions from current payees into the fund plus investment
returns on capital is not enough to fund current beneficiary payouts.
Additionally, except as noted below in certain circumstances, we do not provide
cash or equity incentives tied to performance criteria, which could cause employees to focus solely
on short - term
returns at the expense
of long - term growth and innovation.