Free Cash Flow Calculator


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How can this FCF Calculator help you?

This online FCF Calculator allows you to calculate the value of Free Cash Flow which is a crucial metric of a company's health.

From this article you will learn about the importance of this indicator, how it could be measured and how it could be optimized.  

What is the Free Cash Flow?

Free Cash Flow (FCF) is a value of cash generated by a company from its operations decreased by the capital expenditures the company has to cover. 

While the free cash flow definition may seem very broad it represents a precise value of cash the company has available to the shareholders, investors and lenders. 

The types of FCF

We can distinguish two types of free cash flow:

  • Free cash flow to the firm (unlevered FCF) - the amount of money the company has before paying its financial obligations.
  • Free cash flow to the equity (levered FCF) - the amount of money the company has after paying its financial obligations.

How to calculate the Free Cash Flow Value?

Once you gather all the required information the only thing you need is to fill the form above or substitute the values to the FCF formula.

  1. Calculate operating cash flow from the P&L or balance sheet
  2. FInd out the capital expenditures which in most cases are represented by property, plan and equipment (PPE) in the P&L.
  3. Substitute both values into the below FCF formula. 

Free Cash Flow Formula

FCF = Operating cash flow - Capital expenditures

Where:

Operating cash flow 

It is basically the cash generated by the company in the given period. Note that you cannot put here EBITDA or even EBIT since those metrics not always represent all the money generated by the company.

Capital expenditures

Capital expenditures (a.k.a. CAPEX) is the money spent on tangible assets like plants, property, and equipment.

CAPEX can be calculated using following formula:

​CAPEX = PPEc ​− PPEp ​+ DE

  • PPEc​ - value of the plant, property, and equipment in the current period
  • PPEp​ - value of the plant, property, and equipment in the previous period
  • DE - depreciation expense​
 

Authors

Created by Lucas Krysiak on 2022-06-10 14:57:44 | Last review by Mike Kozminsky on 2022-09-15 14:06:43

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