What is clean cash?
Cash on cash concerns the amount of money that remains after deducting all other fees, obligations and cash flows. In the financial statements, it could refer to the cash that the company has after deducting all its obligations. Investors of shares could use this term as a short form for net cash per share, which is the amount of cash and assets of a close classification that the company has after deducting short -term loans, divided by the number of shares. It could also refer to a clean cash flow or balance. Cash, which is listed under assets, represents the liquid assets that the company owns; This often includes cash, cash equivalents and short -term investments. In this context, net cash relates to cash that remains after deducting the company's debt obligations. For example, if the company has $ 1 million USD (USD) in cash and owes a bank $ 500,000, it has a net cash of $ 500,000.
Cash for Share makes this term more relevantfor the company's investors. It represents the amount of money that the company has, divided by the number of publishing shares. For example, if the company has a previous example in 1,000 shares, net cash per share is $ 500. If the shares of the company trade under $ 500 on the stock exchange, investors refer to shares as a net cash share. These figures help investors to assess the health of the company and compare shares from different companies.
The profit or loss that the company earns during the business period is called net cash flow or income. To calculate this number, the person can deduct the cash outflow of the company from the inflow of cash. For example, the company earns $ 5,000 in January and pays $ 2,000 for purchases of shares, salaries and taxes. The company has a net cash flow of $ 2,000 from $ 5,000 in January.
clean cash balance or position concerns the amount of cash that the company already má, plus the amount of net cash flow it gets at the end of the period. It is specific to a certain time because the number varies depending on the company's money. For example, if a previous example has $ 50,000 in the bank at the end of December, it has a net cash balance at the end of January.