Cash Flow After Taxes - CFAT
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Definition of 'Cash Flow After Taxes - CFAT'
A measure of financial performance that looks at the company's ability to generate cash flow through its operations. It is calculated by adding back non-cash accounts such as amortization, depreciation, restructuring costs and impairments to net income.
Also known as "After-Tax Cash Flow".
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Investopedia explains 'Cash Flow After Taxes - CFAT'
CFAT is important for investors because it gauges a corporation's ability to pay dividends. The higher the CFAT, the better positioned a business is to make distributions. CFAT also measures the company's financial health and performance over time and in comparison to competitors.
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