before-tax cash flow

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Before-Tax Cash Flow

The cash flow a person or company realizes after subtracting debt service and other expenses but not tax liability. Before-tax cash flow represents cash available to pay off creditors in the event of liquidation. While it is an important measure, it is not as closely watched as earnings before interest and taxes.

before-tax cash flow

The amount of money generated by an investment after collection of all revenues and payment of all bills, but without any deductions for depreciation or other noncash items, and before calculation of income tax consequences. An important figure in analyzing any investment,because properties with high depreciation expenses may show tax losses but positive cash flows.In the alternative,a property that requires expensive financing for acquisition or operation may show good net income figures for accounting and tax purposes, but have a negative cash flow requiring the owner to supplement the property with money from other sources.

References in periodicals archive ?
The periodic before-tax cash flows from operations and before-tax cash flow from sale (before-tax reversion) are usually the important cash flows, although some situations call for the use of after-tax cash flows.
The after-tax CCFs are just the before-tax cash flows to both debt and equity, reduced by taxes including interest tax shields.
PPG estimates the net present value of the future before-tax cash flows generated by this lease will total approximately $50 million over the life of the anticipated well development, which is estimated to be over 30 years.
Again the proof is that the before-tax cash flows to the equity position of $5,740,645 equate to an IRR of 18.
A favorable Private Letter Ruling from the Internal Revenue Service, if received by next spring, could increase Westmoreland's before-tax cash flows by $37.