Cash Value Added - CVA

What Does Cash Value Added - CVA Mean?

A measure of the amount of cash generated by a company through its operations. It is computed by subtracting the 'operating cash flow demand' from the 'operating cash flow' from the cash flow statement.

Investopedia explains Cash Value Added - CVA
Cash value added is similar to economic value added but takes into consideration only cash generation as a opposed to economic wealth generation. This measure helps give investors an idea of the ability of a company to generate cash from one period to another. Generally speaking, the higher the CVA the better it is for the company and for investors.

Related Terms

Cash
Cash Flow
Economic Value Added - EVA
Market Value Added - MVA
Operating Cash Flow - OCF
Operating Cash Flow Demand - OCFD
More Related Terms

Related Links

What Is A Cash Flow Statement? - Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports.
Operating Cash Flow: Better Than Net Income? - Differences between accrual accounting and cash flows show why net income is easier to manipulate.
Understanding Economic Value Added - Discover the simplicity of this important valuation metric. We reveal its underlying ideas and examine each of its components.

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