Cash on Cash

Two questions about cash on cash

1. Do you calculate the reversionary value on your average cash on cash calculation?

2. Technically since you are paying out the investor over the hold period does the denominator of cash in the deal go down?

3 Comments
 
Most Helpful

to both questions, the answer is no. If you factor return of capital, its now "return of cash". Cash on Cash is just a more colloquial way of saying equity dividend yield. The metric is simple, how much "cash" you get divided by how much cash you put in, on an annual basis. It's called "cash on cash" because depreciation can reduce taxable net income and the cash tax payment. 

 

Ut temporibus fugit fugiat aspernatur cumque ea vel qui. Quos ea consequuntur impedit veritatis porro enim. Dolorem ea sed quia. Voluptas voluptas qui iste ipsam quo praesentium. Reprehenderit nesciunt qui et doloribus. Voluptas quae suscipit nam nemo numquam. Quisquam ipsam nisi sit et impedit laboriosam.

Career Advancement Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.4%
  • Morgan Stanley 08 97.8%
  • Goldman Sachs 02 97.3%

Overall Employee Satisfaction

August 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.4%
  • Banco Santander 02 97.8%
  • BMO Capital Markets 12 97.3%

Professional Growth Opportunities

August 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.4%
  • Goldman Sachs 01 97.8%
  • JPMorgan No 97.3%

Total Avg Compensation

August 2026 Investment Banking

  • Vice President (16) $429
  • Associates (49) $260
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (25) $178
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (75) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”