What is Cash Flow Per Share? How to calculate?
Posted on September 3, 2009
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What is Cash Flow Per Share
It means current company’s cash flow on hand. It’s always use to measure of a company’s financial strength. However, some profitable companies may not have strong cash flow, it’s because the business is sell their goods on credit.
For Example,
The COMP-A company has $3,000,000 cash flow and total shares issued to public is 10,000,000,000. The Cash Flow Per Share will be $3,000,000 / 10,000,000,000 = $0.0003.
P.S We can have both company’s cash flow and total shares issued figure in the company annual report
How to Calculate Cash Flow Per Share
Cash Flow Per Share = Company’s Cash Flow / Number of shares outstanding
Company’s Cash Flow = Current company’s cash on hand
Number of shares outstanding = Total shares issued to public
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