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 Links:
Learn how the CFS relates to the balance sheet and income statement as a part of a company's financial reports. What Is A Cash Flow Statement?
Differences between accrual accounting and cash flows show why net income is easier to manipulate. Operating Cash Flow: Better Than Net Income?
Discover the simplicity of this important valuation metric. We reveal its underlying ideas and examine each of its components. Understanding Economic Value Added






