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 + |
Fixed Assets Sold |
δWC = δ ( |
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
...