Free Cash Flow to Firm Calculator

✖Cash Flow from Operations indicates the money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service.ⓘ Cash Flow from Operations [CFO]			+10% -10%
✖Interest expense is a non-operating expense shown on the income statement.ⓘ Interest Expense [Int]			+10% -10%
✖The Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.ⓘ Tax Rate [tax]			+10% -10%
✖Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.ⓘ Net Capital Expenditures [CAPEX]			+10% -10%

✖Free cash flow to the firm is the cash available to all investors, both equity and debt holders.ⓘ Free Cash Flow to Firm [FCFF]

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Formula

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Free Cash Flow to Firm

Formula

`"FCFF" = "CFO"+("Int"*(1-"tax"))-"CAPEX"`

Example

`"47300"="50000"+("100"*(1-"8"))-"2000"`

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Free Cash Flow to Firm Solution

STEP 0: Pre-Calculation Summary

Formula Used

Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures
FCFF = CFO+(Int*(1-tax))-CAPEX
This formula uses 5 Variables

Variables Used

Free Cash Flow to Firm (FCFF) - Free cash flow to the firm is the cash available to all investors, both equity and debt holders.
Cash Flow from Operations - Cash Flow from Operations indicates the money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service.
Interest Expense - Interest expense is a non-operating expense shown on the income statement.
Tax Rate - The Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed.
Net Capital Expenditures - Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

STEP 1: Convert Input(s) to Base Unit

Cash Flow from Operations: 50000 --> No Conversion Required
Interest Expense: 100 --> No Conversion Required
Tax Rate: 8 --> No Conversion Required
Net Capital Expenditures: 2000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FCFF = CFO+(Int*(1-tax))-CAPEX --> 50000+(100*(1-8))-2000

Evaluating ... ...

FCFF = 47300

STEP 3: Convert Result to Output's Unit

47300 --> No Conversion Required

FINAL ANSWER

47300 <-- Free Cash Flow to Firm (FCFF)

(Calculation completed in 00.004 seconds)

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< 4 Cash Flow Ratio Calculators

Free Cash Flow to Firm using Working Capital Investment

Go Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital

Free Cash Flow to Firm

Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures

Free Cash Flow to Equity

Go Free Cash Flow to Equity = Cash from Operating Activities-Net Capital Expenditures+Net Debt Issued

Free Cash Flow

Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Free Cash Flow to Firm Formula

Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures
FCFF = CFO+(Int*(1-tax))-CAPEX

How to Calculate Free Cash Flow to Firm?

Free Cash Flow to Firm calculator uses Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures to calculate the Free Cash Flow to Firm (FCFF), Free Cash Flow to firm is the cash available to all investors, both equity and debt holders. Free Cash Flow to Firm (FCFF) is denoted by FCFF symbol.

How to calculate Free Cash Flow to Firm using this online calculator? To use this online calculator for Free Cash Flow to Firm, enter Cash Flow from Operations (CFO), Interest Expense (Int), Tax Rate (tax) & Net Capital Expenditures (CAPEX) and hit the calculate button. Here is how the Free Cash Flow to Firm calculation can be explained with given input values -> 47300 = 50000+(100*(1-8))-2000.

FAQ

What is Free Cash Flow to Firm?

Free Cash Flow to firm is the cash available to all investors, both equity and debt holders and is represented as FCFF = CFO+(Int*(1-tax))-CAPEX or Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures. Cash Flow from Operations indicates the money a company brings in from ongoing, regular business activities, such as manufacturing and selling goods or providing a service, Interest expense is a non-operating expense shown on the income statement, The Tax Rate is the ratio (usually expressed as a percentage) at which a business or person is taxed & Net Capital Expenditures are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.

How to calculate Free Cash Flow to Firm?

Free Cash Flow to firm is the cash available to all investors, both equity and debt holders is calculated using Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures. To calculate Free Cash Flow to Firm, you need Cash Flow from Operations (CFO), Interest Expense (Int), Tax Rate (tax) & Net Capital Expenditures (CAPEX). With our tool, you need to enter the respective value for Cash Flow from Operations, Interest Expense, Tax Rate & Net Capital Expenditures and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

How many ways are there to calculate Free Cash Flow to Firm (FCFF)?

In this formula, Free Cash Flow to Firm (FCFF) uses Cash Flow from Operations, Interest Expense, Tax Rate & Net Capital Expenditures. We can use 1 other way(s) to calculate the same, which is/are as follows -

Free Cash Flow to Firm (FCFF) = Net Operating Profit After Tax+Depreciation and Amortization-Net Capital Expenditures-Changes in Net Working Capital

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