How is cash-on-cash return generally expressed?

Cash-on-cash return is typically expressed as a percentage because it provides a straightforward way to evaluate the return on an investment relative to the cash invested. This metric is particularly useful in real estate and other investment analyses where cash flow is a key consideration. By expressing the cash-on-cash return in percentage terms, investors can easily compare the performance of different investments, helping them assess which opportunities may yield better cash returns relative to their cash outlay.

It highlights the efficiency of capital deployment, allowing investors to understand how much return they are earning for every dollar they put into the investment. This percentage format conveys the profitability aspect clearly and concisely, making financial comparisons intuitive and accessible.