Incentive Cash Flow definition
Incentive Cash Flow means EBITDA (earnings before interest, taxes, and non-cash items such as depreciation, depletion, and amortization), adjusted for non-cash long-term compensation, less a charge for working capital. The charge for working capital is 9% per year (0.75% per month) times the working capital balance (excluding cash). Incentive Cash Flow may be calculated at a corporate or division level.
Incentive Cash Flow means EBITDA (earnings before interest, taxes, and non-cash items such as depreciation, depletion, and amortization), adjusted for non-cash long-term compensation, less a charge for working capital. The charge for working capital is 9% per year (0.75% per month) times the working capital balance (excluding cash). Incentive Cash Flow may be calculated at a corporate, division, or location level.