Cash on cash return
Yearly cash a rental property leaves you divided by the cash you put in.
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Words beside it
- After tax return
What you actually keep after the tax on gains, dividends, and interest.
- Cash flow statement
Where a company's cash actually came from and went during a period. Harder to fake than profit.
- Discounted cash flow (DCF)
Valuing something by its future cash, discounted to today. Two guesses do most of the work.
- Free cash flow
Cash from operations minus what a company spends on equipment and buildings. What is left for owners.
- Nominal return
Return measured in dollars, before adjusting for inflation.
- Real return
Return after adjusting for inflation. (1 + nominal) ÷ (1 + inflation) − 1.
- Sequence of returns risk
The danger that bad years arrive early in retirement when you are withdrawing.
- Total return
Price change plus dividends or interest.
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