Below is the proxy-model of potential future FCF
FCF = Total Revenue - COGS - SG&A - D&A - Non-Cash Expenses - Interest - δWC - Income Tax - CAPEX + IncomeFA |
δWC = δ (Total Revenue - COGS - SG&A) · KWC |
D&A = CAPEX · KDA |
Interest = L · rL |
Income Tax = (Total Revenue - COGS - OPEX) · KTAX |
where
L | Loan-in |
|---|---|
rL | Loan interest annual rate |
KTAX | Income Tax Rate |
+ - +
+ Changes in Fixed Assets
See also
Business / Business Administration / Financial Management / Financial Planning