Free Cash Flow to Firm using Working Capital Investment Calculator | Calculate Free Cash Flow to Firm using Working Capital Investment (2024)

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Free Cash Flow to Firm using Working Capital Investment

Formula

Free Cash Flow to Firm using Working Capital Investment Solution

STEP 0: Pre-Calculation Summary

Formula Used

Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital
FCFF = NOPAT+D & A-CAPEX-C_NWC
This formula uses 5 Variables

Variables Used

Free Cash Flow to Firm (FCFF) - Free cash flow to the firm is the cash available to all investors, both equity and debt holders.
Net Operating Profit After Tax - Net Operating Profit After Tax is a company's after-tax operating profit for all investors, including shareholders and debt holders.
Depreciation and Amortization - Depreciation and Amortization means decrease in the value of a fixed asset and increase in the value of fixed asset over time respectively.
Net Capital Expenditures - Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.
Changes in Net Working Capital - Changes in Net Working Capital represents the difference between a firm’s current assets and current liabilities.

STEP 1: Convert Input(s) to Base Unit

Net Operating Profit After Tax: 1000010 --> No Conversion Required
Depreciation and Amortization: 101 --> No Conversion Required
Net Capital Expenditures: 2000 --> No Conversion Required
Changes in Net Working Capital: 1001 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FCFF = NOPAT+D & A-CAPEX-C_NWC --> 1000010+101-2000-1001

Evaluating ... ...

FCFF = 997110

STEP 3: Convert Result to Output's Unit

997110 --> No Conversion Required

FINAL ANSWER

997110 <-- Free Cash Flow to Firm (FCFF)

(Calculation completed in 00.004 seconds)

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4 Cash Flow Ratio Calculators

Free Cash Flow to Firm using Working Capital Investment

Go Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital

Free Cash Flow to Firm

Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

Free Cash Flow to Equity

Go Free Cash Flow to Equity = Cash from Operating Activities-Net Capital Expenditures+Net Debt Issued

Free Cash Flow

Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Free Cash Flow to Firm using Working Capital Investment Formula

Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital
FCFF = NOPAT+D & A-CAPEX-C_NWC

What is Free Cash Flow to Firm using Working Capital Investment ?

Free Cash Flow to Firm using Working Capital Investment refers to the total cash in hand available in the books of the company after deducting depreciation expenses, taxes, working capital. Current assets include cash and cash equivalents, inventories and accounts receivable. The cash flow is a flow quantity that is generated by every financial transaction and has an effect on the liquid funds of the company. If a company makes an investment, a negative cash flow is generated and the working capital decreases. If a company takes out a loan to finance an investment, there is a positive cash flow when the loan amount is received in the company's account and a negative cash flow when the investment is paid for with it. The working capital has not changed in such case.

How to Calculate Free Cash Flow to Firm using Working Capital Investment?

Free Cash Flow to Firm using Working Capital Investment calculator uses Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital to calculate the Free Cash Flow to Firm (FCFF), Free Cash Flow to Firm using Working Capital Investment represents the total amount of cash flow from day to day operations of the business is available for distribution after accounting for depreciation expenses, taxes, working capital. Free Cash Flow to Firm (FCFF) is denoted by FCFF symbol.

How to calculate Free Cash Flow to Firm using Working Capital Investment using this online calculator? To use this online calculator for Free Cash Flow to Firm using Working Capital Investment, enter Net Operating Profit After Tax (NOPAT), Depreciation and Amortization (D & A), Net Capital Expenditures (CAPEX) & Changes in Net Working Capital (C_NWC) and hit the calculate button. Here is how the Free Cash Flow to Firm using Working Capital Investment calculation can be explained with given input values -> 997109 = 1000010+101-2000-1001.

FAQ

What is Free Cash Flow to Firm using Working Capital Investment?

Free Cash Flow to Firm using Working Capital Investment represents the total amount of cash flow from day to day operations of the business is available for distribution after accounting for depreciation expenses, taxes, working capital and is represented as FCFF = NOPAT+D & A-CAPEX-C_NWC or Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital. Net Operating Profit After Tax is a company's after-tax operating profit for all investors, including shareholders and debt holders, Depreciation and Amortization means decrease in the value of a fixed asset and increase in the value of fixed asset over time respectively, Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment & Changes in Net Working Capital represents the difference between a firm’s current assets and current liabilities.

How to calculate Free Cash Flow to Firm using Working Capital Investment?

Free Cash Flow to Firm using Working Capital Investment represents the total amount of cash flow from day to day operations of the business is available for distribution after accounting for depreciation expenses, taxes, working capital is calculated using Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital. To calculate Free Cash Flow to Firm using Working Capital Investment, you need Net Operating Profit After Tax (NOPAT), Depreciation and Amortization (D & A), Net Capital Expenditures (CAPEX) & Changes in Net Working Capital (C_NWC). With our tool, you need to enter the respective value for Net Operating Profit After Tax, Depreciation and Amortization, Net Capital Expenditures & Changes in Net Working Capital and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Free Cash Flow to Firm (FCFF)?

In this formula, Free Cash Flow to Firm (FCFF) uses Net Operating Profit After Tax, Depreciation and Amortization, Net Capital Expenditures & Changes in Net Working Capital. We can use 1 other way(s) to calculate the same, which is/are as follows -

Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

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✖Net Operating Profit After Tax is a company's after-tax operating profit for all investors, including shareholders and debt holders.ⓘ Net Operating Profit After Tax [NOPAT]			+10% -10%
✖Depreciation and Amortization means decrease in the value of a fixed asset and increase in the value of fixed asset over time respectively.ⓘ Depreciation and Amortization [D & A]			+10% -10%
✖Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.ⓘ Net Capital Expenditures [CAPEX]			+10% -10%
✖Changes in Net Working Capital represents the difference between a firm’s current assets and current liabilities.ⓘ Changes in Net Working Capital [C_NWC]			+10% -10%