What Is Equity Cash Flow?

Equity cash flow is the cash flow that a company can provide to equity investors for a certain period of time. ^[1]

Equity cash flow

Equity cash flow = entity cash flow-debt cash flow ^[2]

Also note:
In the evaluation of corporate value, the debt ratio = net debt / net operating assets. If the debt ratio remains unchanged, the debt ratio = net debt increases / net operating assets increase, and shareholders' equity increases = net operating assets increase × (1- debt ratio) Equity cash flow = net profit-increase in net operating assets × (1- debt ratio)
Because: Net operating assets increase = entity net investment, so: if the debt ratio is unchanged, equity cash flow = net profit-entity net investment × (1- debt ratio)
In addition: increase in shareholders' equity = increase in net operating assets-increase in net liabilities = net investment in entities-net investment in debts = net investment in equity So: equity cash flow = net profit-net equity investment Post-operating profit-Cash flow from net investment debt of the entity = After-tax interest expense-Net debt investment ^[2]