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Cash Flow After Taxes

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Cash Flow After Taxes
A company's cash flow after taxes is derived by taking the net income and removing charges for taxes and depreciation.

Notes:
CFAT is important for investors, as it gauges a corporation's ability to pay dividends. The higher the CFAT, the better positioned a business is for making a distribution.


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Free cash flow is defined as cash flow after taxes, required capital investment and working capital for forecasted sales growth have been met.
Inco will be entitled to recover construction costs from 90% of net cash flow after taxes, with the parties sharing the remaining 10% pro rata.
 
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