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Key data: Evolution Cash flow

Cash flow before taxes is the difference between cash revenues and cash expenses of a business.

The cash flow after taxes can also be defined as the sum of the non-cash expenses of a business and the profit after tax.

The most important non-cash expense is amortization. So another simplified but generally accepted definition is:

cash flow = profit + amortization

When talking about cash flow, we generally refer to cash flow after taxes. Obviously profit after tax is the figure used in the calculation of cash flow after taxes.

Amortization is the result of capital expenditure. The larger the capital expenditure, the higher the total amortization. Amortization gives an indication of the past years’ capital expenditure. However, amortization is not a cash expense. It is a non-cash expense that is deducted from the revenues and therefore reduces the taxable profit without incurring real expenses. Amortization is something that a company may use at its discretion. The amounts released by amortization expenses are usually spent on new capital expenditure.

Charts in the Company Reports

Cash flow per share

The price scale is on the left side of the chart and the fundamental scale is on the right.

Free samples

Consult the free examples on IRvalue.com (click on 'Charts').