Free Cash Flow

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Free cash flow, abbreviated as FCF, is how much cash a business generates after capitol expenditures during a given period of time.

 

free cash flow Formula

\(\large{ FCF = NI +  NCC -  WC - CapEx }\)   

Where:

\(\large{ FCF }\) = free cash flow

\(\large{ CapEx }\) = capital expenditure

\(\large{ WC }\) = change in working capitol

\(\large{ NI }\) = net income

\(\large{ NCC }\) = non-cash charges

 

Tags: Equations for Manufacturing