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The Cash Multiple Does Not Depend on the Amount of Time

question 42

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The cash multiple does not depend on the amount of time it takes to receive the cash,nor does it account for the risk of the investment.It is therefore useful only for comparing deals


Definitions:

Organization's Mission

A statement that outlines an organization's purpose, its reasons for existing, and the unique value it aims to provide.

Form 990

The IRS form used by tax-exempt organizations to provide the public with financial information about the organization, including how their funds are used.

Internal Revenue Service

The U.S. government agency responsible for tax collection and tax law enforcement.

Annual Revenues

The total income generated by a business or organization from its operations over the course of a year before any expenses are deducted.

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