Free Cash Flow Calculator

The following illustrates a free cash flow calculation using our old familiar net cash provided by an operating activities figure of 115 000 and assuming capital expenditures of 45 700 and dividends of 25 000.

Free cash flow calculator. In this calculation free cash flow is a positive amount which is always a good thing. Now let s see the steps to calculate fcf and formula components. Cash from operation is net income plus non cash expense minus increase in non cash working capital. Free cash flow often abbreviate fcf is an efficiency and liquidity ratio that calculates the how much more cash a company generates than it uses to run and expand the business by subtracting the capital expenditures from the operating cash flow.

Free cash flow to equity also referred to as levered fcf. Free cash flow formula calculator. It is the difference between the operating cash flow and the capital expenditure. There are two types of free cash flow.

It s how much money your business has left over to use for other purposes after it s paid for capital expenditures such as buildings equipment and other expenses necessary to sustain its ongoing operation. Calculate fcf using free cash flow formula step by step. Fcf cash from operations capital expenditure. Use this calculator tool to determine whether your present cash flow is enough to cover your needs for payroll loan payments inventory purchases and any other financial draws on your business resources.

It s the money the business has before paying its financial obligations. Free cash flow to the firm also called unlevered fcf. Your free cash flow is a key indicator of your business s health and its profitability. Free cash flow formula in excel with excel template free cash flow formula.

Cash flow is the lifeblood of any business an essential asset for your company to support everyday operations.