What is the difference between cash EPS and EPS?

By Research Desk
about 5 years ago

Cash EPS takes into account the cash flow generated by a company on a per share basis, while EPS looks at the net income generated on a per share basis, for a given period. Like EPS, higher the cash EPS, better it is considered.

 

Cash EPS =                           Operating cash flow for the period                                                       

                           Weighted average number of equity shares outstanding

 

Cash EPS can be computed from EPS by adjusting for depreciation, amortization of goodwill and other non-cash items such as deferred tax and intangibles.


 

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