Operating cash flow per share divides a company's trailing twelve-month operating cash flow by its basic shares outstanding. It measures how much cash from operations is generated per share, providing an alternative to earnings per share that is harder to manipulate through accounting choices. Cash flow is less susceptible to revenue recognition timing, depreciation method changes, and other non-cash adjustments that affect reported earnings.
Cash Flow Per Share = Operating Cash Flow (TTM) / Basic Shares Outstanding
GeminIQ divides TTM operating cash flow from the cash flow statement by period-end basic shares, both from SEC filings.
A: Earnings include non-cash items like depreciation, amortization, stock compensation, and deferred taxes. These are real economic events but they do not directly affect cash. Cash flow per share strips all of that out and shows how much actual cash the business generated per share. Companies can manage earnings through accounting choices, but cash flow is much harder to manipulate.
A: Cash flow per share uses total operating cash flow, which includes the cash needed for capital expenditures. Free cash flow per share subtracts capex, showing only the cash available after maintaining or expanding the asset base. Free cash flow per share is generally the more useful metric for equity investors.
A: Differences stem from the share count basis (basic vs. diluted, period-end vs. weighted average) and the cash flow figure used. GeminIQ uses period-end basic shares for consistency with market cap and other per-share metrics.