About Cash Flow to Stockholders Calculator (Formula)
The Cash Flow to Stockholders Calculator is a tool that helps investors and financial analysts calculate the cash flow that is available to be distributed to the shareholders of a company.
The formula for the Cash Flow to Stockholders is:
CF = D – E
where CF represents the Cash Flow to Stockholders, D represents the Dividends paid to shareholders, and E represents the Total Net New Equity raised by the company.
The calculation of the Cash Flow to Stockholders is important for investors and analysts who are interested in evaluating the financial health and performance of a company. A positive Cash Flow to Stockholders indicates that the company is generating enough cash to cover the dividends paid to shareholders and any new equity raised. On the other hand, a negative Cash Flow to Stockholders indicates that the company is not generating enough cash to cover the dividends paid and new equity raised, which could be a sign of financial distress.
Investors and analysts can use the Cash Flow to Stockholders Calculator to quickly and easily compute this important financial metric. By inputting the Dividends and Total Net New Equity values into the calculator, the tool can instantly calculate the Cash Flow to Stockholders, which can then be used to make informed investment decisions.