Calculate the Free Cash Flow (FCF) for up to 5 years using Operating Cash Flow and Capital Expenditures
Enter Operating Cash Flow (OCF) and Capital Expenditures (CAPEX) for up to 5 years to calculate Free Cash Flow (FCF). All monetary values should be in the company’s reporting currency (e.g., GHS for Ghanaian companies).
Free Cash Flow Formula
FCF = Operating Cash Flow (OCF) - Capital Expenditures (CAPEX)
Where OCF is the cash generated from operations, and CAPEX is the funds used to acquire or upgrade physical assets.
Free Cash Flow (FCF) represents the cash a company generates after accounting for capital expenditures. It’s a key indicator of financial health and the ability to fund growth, pay dividends, or reduce debt.
The company generates enough cash to cover capital expenditures, indicating financial flexibility.
The company may be investing heavily or struggling to generate sufficient operational cash flow.
Input the cash generated from operations for each year. Find this in the company’s cash flow statement on Yahoo Finance or annualreportsghana.com.
Provide the funds used for physical assets (e.g., equipment, buildings) for each year. Find this under "Investing Activities" in the cash flow statement.
Click “Calculate” to compute the FCF for each year. Review the results to assess the company’s cash flow health.
To calculate Free Cash Flow (FCF), you need reliable data for Operating Cash Flow (OCF) and Capital Expenditures (CAPEX). Here’s how to find them for global and Ghanaian companies:
Find the company’s OCF in the cash flow statement:
Find CAPEX in the cash flow statement under “Investing Activities”:
Examples: