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Free cash flow to the firm is the cash available to all investors, both equity and debt holders. Check FAQs
FCFF=NOPAT+D & A-CAPEX-CNWC
FCFF - Free Cash Flow to Firm (FCFF)?NOPAT - Net Operating Profit After Tax?D & A - Depreciation and Amortization?CAPEX - Net Capital Expenditures?CNWC - Changes in Net Working Capital?

Free Cash Flow to Firm using Working Capital Investment Example

With values
With units
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Here is how the Free Cash Flow to Firm using Working Capital Investment equation looks like with Values.

Here is how the Free Cash Flow to Firm using Working Capital Investment equation looks like with Units.

Here is how the Free Cash Flow to Firm using Working Capital Investment equation looks like.

997110Edit=1E+6Edit+101Edit-2000Edit-1001Edit
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Free Cash Flow to Firm using Working Capital Investment Solution

Follow our step by step solution on how to calculate Free Cash Flow to Firm using Working Capital Investment?

FIRST Step Consider the formula
FCFF=NOPAT+D & A-CAPEX-CNWC
Next Step Substitute values of Variables
∴ FCFF=1E+6+101-2000-1001
Next Step Prepare to Evaluate
∴ FCFF=1E+6+101-2000-1001
LAST Step Evaluate
∴FCFF=997110

Free Cash Flow to Firm using Working Capital Investment Formula Elements

Variables
Free Cash Flow to Firm (FCFF)
Free cash flow to the firm is the cash available to all investors, both equity and debt holders.
Symbol: FCFF
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Free Cash Flow to Firm (FCFF)Open Variable
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.
Symbol: NOPAT
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Net Operating Profit After TaxOpen Variable
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.
Symbol: D & A
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Depreciation and AmortizationOpen 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
Changes in Net Working Capital
Changes in Net Working Capital represents the difference between a firm’s current assets and current liabilities.
Symbol: CNWC
Measurement: NAUnit: Unitless
Note: Value can be positive or negative.
Formulas to find Changes in Net Working CapitalOpen Variable

Other Formulas to find Free Cash Flow to Firm (FCFF)

​Go Free Cash Flow to Firm
FCFF=CFO+(Int⋅(1-tax))-CAPEX

Other formulas in Cash Flow Ratio category

​Go Free Cash Flow to Equity
Free Cash Flow to Equity=Cash from Operating Activities-CAPEX+Net Debt Issued
​Go Free Cash Flow
FCF=CFO-CAPEX

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

Free Cash Flow to Firm using Working Capital Investment evaluator uses Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital to evaluate 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 evaluate Free Cash Flow to Firm using Working Capital Investment using this online evaluator? To use this online evaluator 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 (CNWC) and hit the calculate button.

FAQs on Free Cash Flow to Firm using Working Capital Investment

What is the formula to find Free Cash Flow to Firm using Working Capital Investment?
The formula of Free Cash Flow to Firm using Working Capital Investment is expressed as Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital. Here is an example- 997109 = 1000010+101-2000-1001.
How to calculate Free Cash Flow to Firm using Working Capital Investment?
With Net Operating Profit After Tax (NOPAT), Depreciation and Amortization (D & A), Net Capital Expenditures (CAPEX) & Changes in Net Working Capital (CNWC) we can find Free Cash Flow to Firm using Working Capital Investment using the formula - Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital.
What are the other ways to Calculate Free Cash Flow to Firm (FCFF)?
Here are the different ways to Calculate Free Cash Flow to Firm (FCFF)-
  • Free Cash Flow to Firm (FCFF)=Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital ExpendituresOpenImg
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