before-tax cash flow

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 ?
Management believes that before-tax cash flow amounts are also useful for evaluative purposes since future income taxes, that are affected by a company's unique tax position and strategies, can make after-tax amounts less comparable.
Often value is estimated using a debt-free assumption, where net operating income [NOI] and before-tax cash flow [BTCF] are the same amount.
PGI = Potential gross income V&RL = Vacancy and rent loss EGI = Effective gross income OE = Operating expenses NOI = Net operating income DS = Debt service + interest BTCF = Before-tax cash flow TAXES = Federal and state income taxes ATCF = After-tax cash flow
Subtracting $80 interest expense, before-tax cash flow is $20.
Interest expense (10% of an $800 loan) is also subtracted, to result in annual before-tax cash flow of $20.
When a tax saving occurs, it is added to before-tax cash flow to provide after-tax cash flow.
COMPAQ'S BEFORE-TAX CASH FLOWS FROM ITS TRANSACTION IN SHELL STOCK.
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.
The forward-looking statements contained herein include statements relating to the timing and extent of drilling activities and the estimated future before-tax cash flows generated by the lease.
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.
Again the proof is that the before-tax cash flows to the equity position of $5,740,645 equate to an IRR of 18.