Besides profit, other financial targets include return on equity, cash flow and return on invested capital.
With the majority of CDOs being backed by mortgages, the principal-only tranche has a known future cash flow, but at a variable rate of return, while the interest-only tranche has both an unknown cash flow and an unknown rate of return on that cash flow.
The pipe companies instead are benefiting from declining capital needs, improving free cash flow, attractive return of capital.
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The companies continue to generate immense cash flow and to return much of it to stockholders through dividends and stock buybacks.
There is no question that dividends are one way public companies return cash flow to investors, but statistics prove that float shrink is better for overall price performance as the stock of companies who shrink the float using free cash flow rise more then companies using the same amount of cash to pay dividends.
If a firm can deploy the incremental dollar of cash flow at a rate of return greater than its cost of capital, it should pursue acquisitions or internal capital projects, as these methods will be the fastest way to build shareholder value.
IBM, as a global participant, with operating software and consulting services, and is able to, in our judgment, show improving operating margins, a rise in cash flow, and on a total return basis we think it can sustain a very healthy growth rate for the investor.
An increasing amount of analysis based on cash flow is now carried out among institutional equity investors to calculate the real cash return on assets.
Staples comes out on top if the measure is return on equity, free cash flow .
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For long picks, the Ward Ferry team puts a lot of emphasis on such classic numbers as return on equity, free cash flow, dividend yields and price-to-book ratios.
My assumption is enormous free cash flow accumulation is reinvested at a high rate of return plus aggressive share buybacks.
Because of this discrimination against dividends, a profitable, cash-flow-producing public company like mine will return 65 cents of every dollar after taxes as interest to debt holders but only 55 cents as dividends to shareholders.
We achieved broad-based margin improvement, while our cash flow and strong financial position enabled us to continue to return value to our shareholders.
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The price of gas must rise to a level where it is profitable and companies can make a return on their invested capital on a cash flow basis to be willing to assume the risk to exploit these resources.
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She says HP had more of a return on sales investment focus, rather than cash flow.
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Just about every day we see large corporations with strong balance sheets and excess cash flow decide the best use they can make of the money is to return it to shareholders by repurchasing shares that increase the earnings per share behind all the remaining shares.
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In return, Pearl received preferredshares that paid a dividend tied to cash flow.
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