Cash Absorber

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Revision as of 07:21, 25 August 2020 by Dirkjan (talk | contribs) (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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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
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