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Adjustment in OCF for the changes in Fixed Assets:

Changes in

FCF = OCF + Changes in Fixed Assets = OCF( Income from Fixed Assets sold - CAPEX )

or

FCF Net Income +  Non-Cash Expenses 

- Increase in Working Capital + Changes in Fixed Assets

or

FCF = Total Revenue COGS - OPEX  - Non-Operating Expenses Interest - Income Tax  +  Non-Cash Expenses  - Increase in

 Working Capital + Changes in Fixed Assets


It is one of the most important measures of the Business profitability.

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Operating Cash Flow (OCF) ]Profit and Loss ]