FINANCIAL CALCULATORS
Free Cash Flow Calculator
Calculate your company’s free cash flow after capital expenditures.
What is the Free Cash Flow Calculator & How does it work?
Free Cash Flow (FCF) is a measure of financial performance, indicating the amount of cash a company generates that can be used to fund growth or pay dividends. It is calculated by subtracting capital expenditures from operating cash flow.
Operating Cash Flow (OCF) represents the cash generated from a company’s primary business activities. Capital Expenditures (CapEx) are investments in property, plant, and equipment that are necessary for the operation of the business.
Operating Cash Flow (OCF) represents the cash generated from a company’s primary business activities. Capital Expenditures (CapEx) are investments in property, plant, and equipment that are necessary for the operation of the business.
FCF = OCF – CapEx
OCF = Operating Cash Flow
CapEx = Capital Expenditures
CapEx = Capital Expenditures
Parameters
Free Cash Flow—
Frequently Asked Questions
What is Free Cash Flow?
Free Cash Flow (FCF) is the cash a business generates after accounting for capital expenditures, representing funds available for growth or dividends.
How do I calculate Operating Cash Flow (OCF)?
Operating Cash Flow is calculated by adding non-cash expenses like depreciation to net income and then adjusting for changes in working capital.
What are Capital Expenditures (CapEx) in this context?
Capital Expenditures include investments in property, plant, and equipment necessary for the business’s operations.
Why is Free Cash Flow important for investors?
Free Cash Flow helps investors understand a company’s ability to generate cash and fund its growth or pay dividends.
Can I use this calculator for personal finances?
This calculator is specifically designed for business use. For personal finances, consider using other tools tailored to individual financial planning.
How do changes in working capital affect Operating Cash Flow?
Changes in working capital, such as accounts receivable and payable, directly impact Operating Cash Flow by affecting cash inflows and outflows.
What if my company has negative Free Cash Flow?
Negative Free Cash Flow indicates that the company is spending more on operations than it’s generating in cash. This may require attention to improve operational efficiency or financial strategies.
Results are for informational purposes only and do not constitute professional advice.