Discretionary cash flow

(redirected from Discretionary Cash Flows)

Discretionary cash flow

Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on.

Discretionary Cash Flow

The cash flow available to a company after its capital expenditures have been financed to their net present value and after all liabilities, such as employee wages and others, have been paid. The discretionary cash flow may be used to pay dividends to shareholders, to provide bonuses to executives, or for any number of other purposes.
References in periodicals archive ?
Shareholder value is a function of the amount and timing of discretionary cash flows to the (common) shareholders of a company.
A discount rate is the rate of return used in a discounted cash flow valuation methodology to convert a series of forecasted discretionary cash flows to present value.