Comments on: Free Cash Flow Explained

By: Ken Faulkenberry

Ken Faulkenberry — Sat, 28 May 2011 18:07:19 +0000

I prefer using Net Cash Flow which is Net Profit + Non-Cash Expenses. This the amount of money management has to re-invest, payoff debt, or return to shareholders. I have written an article on the subject at: http://blog.arborinvestmentplanner.com/2011/05/what-is-net-cash-flow

By: jojo

jojo — Fri, 25 Mar 2011 04:00:51 +0000

What is the difference between free cash flow and cash flow statement? Since the formula for Free Cash Flow = Net Income + Depreciation + Deferred Taxes – Dividends Paid- Capital Expenditures, cash flow from Financing activities (ie. loan, loan repayment etc) is excluded? can we assume free cash flow = cash flow statement?

By: Will Wu

Will Wu — Fri, 09 Apr 2010 00:19:10 +0000

Free cash flow = Cash flow from operation minus capital expenditure.

By: My Reference Frame

My Reference Frame — Wed, 11 Nov 2009 23:43:58 +0000

I’ve seen the following calculation: [(net income)+(depreciation/amortization)] – [(changes in working capital) + (capital expenditures)]. Any comments? Thanks.

By: Collin

Collin — Wed, 06 Aug 2008 16:17:25 +0000

In short, it is Net Cash from Operating Activities – Dividends Paid – Capital Expenditure?

Where can we derive the figure for Capital Expenditure? Net Cash from Investing Activities?

Thanks.