Capital yield is a measure of how much cash a company uses or receives from its financing activities relative to its total value. It is calculated by dividing the trailing 12-month cash flow from financing activities by the periodic enterprise value and multiplying by 100. It indicates how much cash flow the company has from issuing or repaying debt and equity. Cash flow from financing activities is the net amount of cash that a company receives or pays for issuing or repaying debt and equity. Enterprise value is the measure of a company’s total value, including its equity and debt, minus any cash or cash equivalents. The formula for capital yield is:
Capital yield = (Trailing 12-month cash flow from financing activities / Enterprise value) * 100
Where:
- Trailing 12-month cash flow from financing activities is TM020,
ttm_cff
- Enterprise value is R0075,
enterprise_value