1. What is Cash Flow Per Share (CFPS)?

Cash Flow Per Share (CFPS) is a financial metric that measures the amount of cash flow generated by a company per outstanding share of its common stock. It provides investors with insight into a company's financial health and its ability to generate cash.

2. How Does the Calculator Work?

The calculator uses the CFPS formula:

Where:

• Cash Flow — Total cash flow generated by the company (in currency)
• Shares — Total number of outstanding shares

Explanation: The formula divides the total cash flow by the number of shares to determine how much cash flow is attributable to each share.

3. Importance of CFPS Calculation

Details: CFPS is an important indicator of a company's financial performance and liquidity. It helps investors assess the company's ability to generate cash, pay dividends, and fund future growth.

4. Using the Calculator

Tips: Enter the total cash flow in currency and the total number of outstanding shares. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is considered a good CFPS value?
A: A higher CFPS generally indicates better financial health, but it should be compared with industry benchmarks and historical performance.

Q2: How does CFPS differ from EPS?
A: CFPS measures cash flow per share, while EPS (Earnings Per Share) measures net income per share. CFPS is often considered more reliable as cash flow is harder to manipulate.

Q3: Can CFPS be negative?
A: Yes, if a company has negative cash flow, CFPS will be negative, indicating financial difficulties.

Q4: How often should CFPS be calculated?
A: CFPS should be calculated quarterly and annually to track a company's cash flow performance over time.

Q5: Where can I find cash flow and shares data?
A: These figures are typically found in a company's financial statements, such as the cash flow statement and balance sheet.