Relationship between flow to shareholders and net income
Is there any relationship in between the flow to shareholders and the net income?
Expert
The relation among net income (BFO) and the obtainable flow to shareholders (CFac) in a year is the given here: CFac = BFO – ΔNOF – ΔAFN + ΔD + ΔEvc*, here ΔNOF is the enhance in working capital requirements, ¬AFN the enhance in net fixed assets, ΔD the enhance in financial debt and ΔEvc* the rise in Shareholders’ Equity that is not because of profits (i.e. reserves, conversion of convertibles).
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