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

ECONOMIC INCOME is the maximum amount that can be distributed to owners during the accounting period and leave the business as well off at the end of the accounting period as it was at the beginning of the period; i.e. cash flow based.

VALUE FOR MONEY is in the perception of the buyer or receiver of goods and/or services. Proof of good value for money is in believing or concluding that the goods/services received was worth the price paid. Examples of the types of factors that may be considered are suitability, quality, skills, price, whole of life costs and other criteria. The mix of these and other factors and the relevant importance of each will vary on a case by case basis.

Suggest a Term

Enter Search Term

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