Cash flow after interest and taxes

Cash flow after interest and taxes

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved