Let's think about the returns a company is able to deliver to its shareholders across its life cycle.

Well, at introduction, the business is not gonna have sufficient cash to be able to pay dividends, and shareholders will accept the fact that if the business is looking to move into growth, it will lead to divert all of its cash towards CapEx, increasing OWC and growing the business.

And that will continue through the growth stage.

However, as more and more equity investors fund the business, they will reach a point where they want to realize a return.

And at that point, the business may consider an initial public offering whereby some of the initial investors can sell out part of their stake as the business reach maturity.

Then there'll be much more pressure to pay dividends and buy back shares.

And of course, there'll be surplus cash flows to make that a reality.

If the business moves into decline, then it may choose to pay dividends to shore up the share price, and there'll be no new investment opportunities for the business since it is in decline to divide divert cash.