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. 

 

Ad sapiente id velit nesciunt cupiditate. Et quia nostrum qui quibusdam quisquam rem. Suscipit autem nostrum est ut sint. Sed illum alias et et dolorem sunt exercitationem. Error dolores ad amet molestiae occaecati ut doloremque. Voluptates quam doloremque dicta quo non eos quo. Id possimus reprehenderit laborum in.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.2%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.9%
  • Morgan Stanley 01 98.3%
  • Banco Santander 02 97.7%
  • BMO Capital Markets 12 97.2%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.2%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (16) $429
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (14) $159
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $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

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
Secyh62's picture
Secyh62
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
DrApeman's picture
DrApeman
98.9
10
Mimbs's picture
Mimbs
98.8
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...”