One formula for calculating a levered firm's free cash flow (FFCF, or CFFA) is to use earnings before interest and tax (EBIT).
FFCF=(EBIT)(1−tc)+Depr−CapEx−ΔNWC+IntExp.tc=(Rev−COGS−Depr−FC)(1−tc)+Depr−CapEx−ΔNWC+IntExp.tc
One formula for calculating a levered firm's free cash flow (FFCF, or CFFA) is to use earnings before interest and tax (EBIT).
FFCF=(EBIT)(1−tc)+Depr−CapEx−ΔNWC+IntExp.tc=(Rev−COGS−Depr−FC)(1−tc)+Depr−CapEx−ΔNWC+IntExp.tc