Difference between revisions of "Cash Absorber"
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(Created page with "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...") |
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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
