One formula for calculating a levered firm's free cash flow (FFCF, or CFFA) is to use net operating profit after tax (NOPAT).
FFCF=NOPAT+Depr−CapEx−ΔNWC=(Rev−COGS−Depr−FC)(1−tc)+Depr−CapEx−ΔNWC
One formula for calculating a levered firm's free cash flow (FFCF, or CFFA) is to use net operating profit after tax (NOPAT).
FFCF=NOPAT+Depr−CapEx−ΔNWC=(Rev−COGS−Depr−FC)(1−tc)+Depr−CapEx−ΔNWC