Cash can be distributed to the equity shareholders of the company as dividends or stock buybacks—after all expenses, reinvestments, and debt repayments are taken care of. It is also referred to as the levered free cash flow or the flow to equity. Cash is a liquid asset transferred in and out of the investment. When you have positive cash flow, you can transfer the surplus immediately into another investment vehicle, such as stock, or use it to increase your real estate portfolio. Equity, on the other hand, is tied to the value of the property itself. Equity cash flow represents funds a company receives from investors. Return on equity is a basic financial performance metric that measures how well the company generates profits from equity cash flow. The basic formula is net income divided by total shareholder's equity. Since this is the section of the statement of cash flows that indicates how a company funds its operations, it generally includes changes in all accounts related to debt and equity. Financing activities include: Issuance of equity.

Varchas Manohar

24 resources

2

2

0

Like