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

ONLINE is access to a computer for immediate processing without having to wait for a batch of transactions to be processed at a later time.

ECONOMIC ORDER QUANTITY is the order quantity that minimizes total inventory costs. A total inventory cost is the sum of ordering, carrying and stock-out costs.

Suggest a Term

Enter Search Term

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