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". Investopedia Says:
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. Related Terms:
Cash Flow
Depreciation
Dividend
Net Income - NI
Non-Cash Charge |