Cash Flow to Shareholders

« Back to Glossary Index

Cash flow generated by a company available to compensate shareholders, once all prior expenses and obligations have been satisfied. This cash flow to shareholders is realized through dividends, residual income, share repurchases, and the increase of treasury surpluses. It is obtained from the free cash flow after paying the debt service without considering the tax impact on corporate income tax of debt interest and extraordinary payments.

« Back to Glossary Index