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Free Cash Flow Formula

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Free cash flow (FCF) is the amount of cash that a company has left over after it has paid all of its expenses, including net capital expenditures. Check FAQs
FCF=CFO-CAPEX
FCF - Free Cash Flow?CFO - Cash Flow from Operations?CAPEX - Net Capital Expenditures?

Free Cash Flow Example

With values
With units
Only example

Here is how the Free Cash Flow equation looks like with Values.

Here is how the Free Cash Flow equation looks like with Units.

Here is how the Free Cash Flow equation looks like.

48000Edit=50000Edit-2000Edit
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HomeIcon Home » Category Financial » Category Business » Category Financial Ratios » fx Free Cash Flow

Free Cash Flow Solution

Follow our step by step solution on how to calculate Free Cash Flow?

FIRST Step Consider the formula
FCF=CFO-CAPEX
Next Step Substitute values of Variables
∴ FCF=50000-2000
Next Step Prepare to Evaluate
∴ FCF=50000-2000
LAST Step Evaluate
∴FCF=48000

Free Cash Flow Formula Elements

Variables
Free Cash Flow
Free cash flow (FCF) is the amount of cash that a company has left over after it has paid all of its expenses, including net capital expenditures.
Symbol: FCF
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Free Cash FlowOpen Variable
Cash Flow from Operations
Cash Flow from Operations indicates the money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service.
Symbol: CFO
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Cash Flow from OperationsOpen Variable
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.
Symbol: CAPEX
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Net Capital ExpendituresOpen Variable

Other formulas in Cash Flow Ratio category

​Go Free Cash Flow to Firm
FCFF=CFO+(Int⋅(1-tax))-CAPEX
​Go Debt to Assets Ratio
DA=TLTA
​Go Debt to Equity Ratio
RD/E=TLTSE⋅100
​Go Business Current Ratio
CR=CACL

How to Evaluate Free Cash Flow?

Free Cash Flow evaluator uses Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures to evaluate the Free Cash Flow, Free Cash Flow (FCF) is the amount of cash that a company has left over after it has paid all of its expenses, including net capital expenditures. Free Cash Flow is denoted by FCF symbol.

How to evaluate Free Cash Flow using this online evaluator? To use this online evaluator for Free Cash Flow, enter Cash Flow from Operations (CFO) & Net Capital Expenditures (CAPEX) and hit the calculate button.

FAQs on Free Cash Flow

What is the formula to find Free Cash Flow?
The formula of Free Cash Flow is expressed as Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures. Here is an example- 48000 = 50000-2000.
How to calculate Free Cash Flow?
With Cash Flow from Operations (CFO) & Net Capital Expenditures (CAPEX) we can find Free Cash Flow using the formula - Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures.
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