STOCK RESERVE Definition

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STOCK RESERVE (SR) or buffer stock is a stock quantity which is based on the normal average expected consumption during the lead-time to replenish depleted stock. See also SAFETY STOCK.

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

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:

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