Cash Value Added - CVA


DEFINITION of 'Cash Value Added - CVA'

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.

BREAKING DOWN '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.

  1. Cash

    Legal tender or coins that can be used to exchange goods, debt ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out ...
  3. Economic Value Added - EVA

    A measure of a company's financial performance based on the residual ...
  4. Market Value Added - MVA

    A calculation that shows the difference between the market value ...
  5. Operating Cash Flow - OCF

    Operating Cash Flow (or OCF) is a measure of the amount of cash ...
  6. Value-Added Tax - VAT

    A type of consumption tax that is placed on a product whenever ...
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  1. What is the difference between Economic Value Added (EVA) and Market Value Added ...

    There are numerous ways that investors and lenders can estimate the valuation of a company. This becomes increasingly important ... Read Full Answer >>
  2. Why should fundamental investors pay attention to Cash Value Added (CVA)?

    Cash value added (CVA) can help fundamental investors evaluate how well a company can meets its cash flow needs over time. ... Read Full Answer >>
  3. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  4. What are working capital costs?

    Working capital costs (WCC) refer to the costs of maintaining daily operations at an organization. These costs take into ... Read Full Answer >>
  5. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... Read Full Answer >>
  6. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>

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