We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments.
cash on hand. Definition. Funds that are immediately available to a business, and can be spent as needed, as opposed to assets that must be sold to generate cash. The amount of cash on hand determines what projects a company can undertake, or what financial hardships can be absorbed, without going into debt or arranging other financing.
Cash on Cash is not a Time Value of Money measure, which means you canât compare the Cash on Cash % against the yield on a bank account, the yield on bonds, or IRRâs. If you are looking at a property from an owner/user viewpoint the Cash on Cash ratio does not work, because there is no income for the ratio to use.