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Annually a Shareholder of a company will want to be rewarded by either a cash return for putting money in to the company (buying shares) OR be able to see their shares at a high value than they were bought at because the company is doing well and people want a "bit of the action"
Negative Cash Flow - all the funds are going out and nothing is coming in therefore the company isn't making a penny NOR breaking even - its losing. The shareholder's gets nothing and cannot sell their shares as buyers don't want to throw money at a company who are spending not making money
What else can I help you with?
What does organic cash flow mean?
Organic cash flow refers to the cash generated by a company's core business operations, excluding any income from non-operational activities like investments or asset sales. It reflects the health and efficiency of the business in generating cash from its primary activities, such as sales of goods and services. This measure is essential for assessing a company's ability to sustain operations, invest in growth, and return value to shareholders without relying on external financing.
Who controls public companies?
If you mean 'who owns public companies' the answer is the shareholders. If you mean 'who oversees the interests of the shareholders' the answer is the Board of Directors. If you mean 'who manages the day-to-day operations' the answer is the executives and officers of the corporation.
What does cash flow forecast mean?
it is a forecast of the amount of cash you will be gaining through-out a period of time. for example: icecream vans: there forecast of cash will be low in the winter as not many people by ice creams by the forcast in the summer will be high as more people buy icecreams then.
What do you mean by shareholders wealth maximisation?
analysis of shareholder wealth maximisation
What does private shareholders mean?
Private shareholders are individuals or entities that own shares in a private company, which is not publicly traded on stock exchanges. These shareholders typically invest their own capital and may have a more direct influence on company decisions compared to public shareholders. Private shares are often less liquid, meaning they cannot be easily bought or sold. Private shareholders may include founders, venture capitalists, and private equity firms.
What does a negative cash flow to creditors mean?
Cash flow is any money that comes into or goes out of a business. A negative cash flow would represent debt or a lack of profit for a company. This can be a red flag to creditors.
What does the mean of negative balance in cash flow from investing?
1. It means that company has more cash outflows from investing activities in comparison to cash inflows from investing activities at any specific time period. If it has more cash inflows the balance will be positive and vice versa.
What does cash flow per share mean?
Cash flow per share means how much any company has earned cash flow per outstanding share same like net profit per share which is as follows: cash flow per share = total cash flow / number of outstanding shares
What does organic cash flow mean?
Organic cash flow refers to the cash generated by a company's core business operations, excluding any income from non-operational activities like investments or asset sales. It reflects the health and efficiency of the business in generating cash from its primary activities, such as sales of goods and services. This measure is essential for assessing a company's ability to sustain operations, invest in growth, and return value to shareholders without relying on external financing.
What does the abbrevition'NOCG' mean in accounting?
NOCG for cash flow analysis is Net Operating Cash Generated.
What does a negative cash flow from financing activities mean?
Negative cash flows from financing activities means that the firm is paying out more money to investor (in the form of debt principal repayment, interest payment, dividends and share repurchases) than it is raising from investors. Usually, negative cash flows from financing activities are associated with mature companies generating more than enough cash from operations to fund future activities. It is not necessarily bad news. Conversely, early-stages firms rapidly growing firms and those in financial distress typically have positive cash flows from financing activities.
If a company's cash flow statement is negative what does it mean?
When there is a negative figure on a cash flow forecast or statement it may mean a variety of things are happening in the business:It may be a seasonal business and may not have had sales (cash inflow) that month so the figure at the end of the month is negative because there have only been bills to pay (cash outflows) with no money coming in. A seasonal business may be an ice cream van (poor sales in cold months) or a fireworks shop (only open Oct / Nov / Dec).It may mean that the business has unmanageable bills to pay (cash outflow) and has perhaps over estimated what the sales would be (cash inflow) and so has a negative balance at the end of the month.
What is the difference between cash flow and cash?
Profit mean that when a company sales turnover more so extra income that we get is profit. Cash flow means inflow & outflow of cash when there is any expenses or income earned.
What does a negative cash from investing activities mean?
Negative cash flow from investing activities means that a company has spent more money on fixed assets than it has received from the sale of fixed assets in a given financial period. It's usually a sign of a company growing/investing in itself with a few to growing cash flow from operating activities, Positive cash from investing activities means that the company is selling off more fixed assets than it is investing in. There could be many reasons for this e.g. the value of the asset has grown and the company wants to realise a profit or to meet operating or financial cash flow obligations. Despite the use of the word 'postitve' is not always a good sign for a business.
What does negative polarity mean with electricity?
Polarity is the direction of flow of electrons throughout a circuit. There are two types of polarity: positive and negative. Postive polarity is of older circuits which means electrons flow from positive to negative. Negative polarity is of more modern circuits and that is the flow of electrons from negative to positive such as on car batteries
Who controls public companies?
If you mean 'who owns public companies' the answer is the shareholders. If you mean 'who oversees the interests of the shareholders' the answer is the Board of Directors. If you mean 'who manages the day-to-day operations' the answer is the executives and officers of the corporation.
In investing what does the term cash-on-cash mean?
In the investment world, cash on cash refers to the before tax cash flow and it is relative to the entire amount of cash a person has invested. It is generally only relevant when the owner of an invested asset derives income from the asset that they own.
