Cash flow after interest and taxes

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Cash flow after interest and taxes

Cash Flow After Interest and Taxes

In accounting, a measure of a company's cash flow after all taxes and interest expenses are paid. It is calculated by taking the company's net income and adding back in the value of all non-cash expenses, notably amortization and depreciation. Publicly-traded companies with a high cash flow after interest and taxes are in a better position to distribute cash dividends than those with a low cash flow after taxes. In addition, it is also used as a measure of general performance and financial health.