Cash yield
The annual cash a deal produces measured against the equity put in. It answers what the investment pays while it is held rather than what it returns at exit.
Cash yield at Hanil Widget Works
The displayed 2.57m of owner earnings divided by 19.04m of sponsor equity is 13.5%. Without a reconciliation of debt service, reinvestment, ownership allocation and actual distributions, this ratio does not establish annual sponsor cash yield. The case must show annual cash attributable to the same equity investment before the result can carry that label.
| first | Owner earnings 2.57m |
|---|---|
| ÷ | Equity 19.04m |
| = | Owner-earnings ratio 13.5% |
Terms Related to Cash yield
Cash-on-cash return · Owner earnings · Free cash flow · Dividend recapitalization · IRR · All of the glossary