The Cashflow to stockholders is calculated by subtracting the dividends paid from ending common stock, the additional in capital paid and treasury stock, beginning common stock, the additional in capital paid and treasury stock. It is an important parameter to assess for the greater dividends in future. It is about calculating the amount of profit/revenue that was generated to be paid out to the share holders. The cash flow to stockholders equation result is also referred as cash flow to investors.
The Cash flow to stockholders or revenue refers to the cash dividends distributed to the debt holders and equity holders over a reporting period. The cash flow to stockholders equation is complex, you can use our online calculator to find the result accurately.