1. What is Cash Flow Per Share?

Cash Flow Per Share (CFPS) is a financial metric that measures the amount of cash flow available to each outstanding share of a company's stock. It provides 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:

• \( \text{Cash Flow} \) — Total cash flow (in currency)
• \( \text{Shares} \) — Number of outstanding shares

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

3. Importance of CFPS Calculation

Details: CFPS is important for investors as it indicates a company's ability to generate cash flow relative to its share count, which can be used for dividends, reinvestment, or debt reduction.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

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

Q2: How does CFPS differ from EPS?
A: CFPS measures cash flow per share, while EPS measures earnings 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: What types of cash flow are used in CFPS?
A: Typically, operating cash flow is used, but some analyses may use free cash flow or total cash flow.

Q5: How often should CFPS be calculated?
A: CFPS should be calculated quarterly and annually to track a company's cash flow performance over time.