Free Cash Flow question?
Jay J asked:
I’ve found two version of the FCF formula:
1. EBITDA-Cash Tax Payments-Change in Working Capital-Capital Expenditures
2. Operating Cash Flow (From the Cash Flow Statement)-Capital Expenditures
I’ve found two version of the FCF formula:
1. EBITDA-Cash Tax Payments-Change in Working Capital-Capital Expenditures
2. Operating Cash Flow (From the Cash Flow Statement)-Capital Expenditures
How does EBITDA-Cash Tax Payments-Change in Working Capital=Operating Cash flows?
A simple mathematical explanation would be very helpful.
Chuck
The quality of earnings either by comparing the cash flow from operations shows the cash flow from operations ni income cash flow to operations cash flow from operations shows the operating income or net income from.