CASH FLOW PER SHARE Definition

Bookmark and Share

CASH FLOW PER SHARE is a good measure of a firm's financial strength. Analysts put more weight on cash flow per share than earnings per share because EPS is more easily manipulated, its reliability can at times be questionable. Cash is almost impossible to falsify, i.e. you either have cash or you don't. Cash flow per share is a useful measure for the strength of a firm and the sustainability of its business model. The formula:

Learn new Accounting Terms

ACCOUNTS PAYABLE (AP) are trade accounts of businesses representing obligations to pay for goods and service received.

GOING RATE is an expression that means the cost of the average of suppliers of like products or services. The connotation is that the cost will be "no more expensive than the competition."

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.