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Below is the proxy-model of potential future  FCF  FCF:

FCF  = Total Revenue COGS - SG&A  - D&A  - Non-Cash Expenses  - Interest - δWC Income Tax - CAPEX +

IncomeFA

 Fixed Assets Sold


δWC = δ (

Total Revenue 

COGS - SG&A) · KWC

D&A = CAPEX · KDA

Interest =  L · rL

Income Tax = (Total Revenue - COGS - OPEX· KTAX

where

 L

L

Loan-in

rL

Loan interest annual rate

KWC

WC to COGS - SG&A ratio (usually around 25% which corresponds to )

KDA

D&A to CAPEX ratio (usually around 20% which corresponds to 5 years write-off)

KTAX

Income Tax Rate

 +   -  + 

...

Fixed Assets Sold

Proceeds from selling Fixed Assets 


See also

...

Business / Business Administration / Financial Management / Financial Planning

...