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. Investopedia Says:
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 |