Calculate free cash flow from operating cash flow less the capital expenditure needed to sustain it.
The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.
Free Cash Flow
Free Cash Flow = Operating cash flow − Capital expenditure
Free Cash Flow = Operating cash flow − Capital expenditure The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.
Working the cash flow statement up from its components makes clear which line is moving it, which a single headline number hides.
This calculator takes 2 inputs: Operating cash flow, Capital expenditure. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.