Difference between revisions of "Cash Absorber"

From knowledgebase
Jump to navigation Jump to search
 
Line 1: Line 1:
−
Cash Absorber
+
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