Definition of Cash Earning per Share (Cash EPS)

Definition of Cash Earning per Share (Cash EPS)

Definition:

Cash earning per share is also called cash EPS. For the measurement of the financial performance of the company, this ratio is used.

This ratio ignores all the noncash item impacting the normal EPS to provide the real earning generated by the business.

Definition of Cash Earning per Share (Cash EPS)

What is Cash EPS (CEPS)?

Companies or other business have many noncash items like depreciation and amortization hide the underlying performance of business or companies. Cash EPS give a strict measure by removing these accounting adjustments.

For normal EPS, higher CEPS is better. The companies mostly display increasing CEPS over the years in order to show a lot of assets on the book. Here you can learn about Cash Earning per Share Formula.

Financial Ratio is a forum where you will learn about all ratios definitions and formulas.

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