Difference between revisions of "Cash Absorber"
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| − | + | A cash absorber is a company that needs more money than they generate. Possible measures: | |
| + | * Sell new equity | ||
| + | * Increase financial leverae | ||
| + | * Reduce divident pay out ratio | ||
| + | * Prun (marginal) product lines | ||
| + | * Reduce growth in sales | ||
| + | * Look for a partner | ||
| + | * Be acquired (by a cash cow) | ||
| + | * Or go bankrupt | ||
[[Category:finance]] | [[Category:finance]] | ||
Latest revision as of 19:23, 27 August 2020
A cash absorber is a company that needs more money than they generate. Possible measures:
- Sell new equity
- Increase financial leverae
- Reduce divident pay out ratio
- Prun (marginal) product lines
- Reduce growth in sales
- Look for a partner
- Be acquired (by a cash cow)
- Or go bankrupt
