Cash Earning per Share Formula is used by the investors and analysts to find the financial performance of the company. Cash EPS Formula has the following 2 equations.
Cash EPS= Operating Cash flow/Number of Shares Outstanding
Cash EPS = [Net Income + Depreciation and amortization x ( 1- Tax )]/Number of shares outstanding
In the first formula, there is the inclusion of the change in the working capital due to which both formulas have a different result. For the calculation of the accurate Cash EPS, identification of noncash element in the income statement is necessary. Here you can learn about the Definition of Cash earning per share.
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