Definition
Cash-on-cash return is the annual return on investment based on cash invested, excluding financing. Treat it as a number you can compute and argue about, not a slide decoration. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Cash-on-cash return?” The useful answer is concrete: annual return on investment based on cash invested, excluding financing. A slide title is not an answer.
Common mistake
Using Cash-on-cash return as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Cash balance
Amount of cash and cash equivalents held by a company at a point in time.
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Cash break-even point
Sales level where cash inflows equal cash outflows, excluding non-cash expenses.
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Cash budget
Financial plan showing expected cash receipts and payments over a period.
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Cash burn rate
Rate at which a company consumes its cash reserves over time.
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