About the calculation of FCFE and FCFF in finance

The company's corporate free cash flow (FCFF) = (net profit after tax + interest expense + non-cash expenses) - working capital addition - capital expenditure.

FCFE FCFF Non-Equity Cash Flow.

FCFF Interest Expense (Principal Paid Back, Cash Borrowed), Preferred Stock Dividends, and Minority Stock Dividends.

In fact, FCFE and FCFF are basically cash flows, so you can get it by relying only on the cash flow statement, which is basically as follows:

FCFENET Income is net profit, which is found in the income statement or cash flow statement.

Change in net working capital Cash flow statement schedule, i.e. receivables and payables Provision for amortization under the indirect method.

Net Capital Expenditure, Net Capital Expenditure, Cash Flow Statement, Net Flow of Investment Activities.

Net flow of financing activities in the direct method of the New Debt Netshare cash flow statement.

It seems that there is still depreciation missing from your formula, that is, depreciation of fixed assets, amortization of assets, provision for impairment and so on under the cash flow statement.

FCFF is actually the same, it is basically a cash flow statement, not a balance sheet or a profit and loss statement.

Net income, change in net working capital = current assets - current liabilities, new debt value, debt repayment amount.

Operating cash flow, expenses, change in nwc, changes in investments.

To put it simply, the FCF (Free Cash Flow) formula is the cash profit left over after deducting all operating costs and investment for the year, which can be distributed to investors in the form of real money**. The free cash flow formula holds that only the operating profit generated in its continuous, main or core business is the source of sustainable development of the enterprise, and all non-recurring income (gains) arising from abnormal business activities are not included in the free cash flow.

Accounting cash flow emphasizes cash flow. For example, the enterprise sells goods, provides labor services, ** fixed assets, borrows from banks, etc., and obtains cash, forming the cash inflow of the enterprise. The cash outflow of the enterprise is formed by the payment of cash for the purchase of raw materials, the acceptance of labor services, the purchase and construction of fixed assets, foreign investment, and the repayment of debts.

FCF, free cash flow, is the cash flow generated by the enterprise after meeting the reinvestment needs, this part of the cash flow is the maximum amount of cash that can be allocated to the capital of the enterprise without affecting the sustainable development of the company. Let's do a quiz before studying, click on the test, I am not suitable for studying accounting.

FCF, free cash flow, refers to the cash flow generated by the company's core operating activities after deducting the new capital investment.

FCF = Net Profit (EBIT minus tax) + Depreciation (non-cash items deducted from profits) - Capital Expenditure (not recorded in profit, but also cash expense) - Increase in working capital (defined).