Free Cash Flow
Free cash flow is the company's cash remaining after repayment of all operating expenses, interest, taxes and capital expenditures (CAPEX).
The formula is used to calculate:
Method 1: FCF = Net Cash Flows from Operations - Capital Expenditure (CAPEX)
Method 2: FCF = EBITDA - income tax paid - capital expenditures (CAPEX) - changes in working capital (NWC)
Free cash flow is the amount of money a company receives from operating activities. These cash flows can be directed to the following:
1. Payment of dividends
2. Repurchase of own shares (Buyback)
3. Pay off debts
4. M&A deals
5. Saving money on the balance sheet
According to Ranks methodology, this indicator is analyzed in the Value block and used along with other indicators to calculate the score. The indicator is presented as a % of repurchased shares.
Aghasi Khanjyan street, 50, Yerevan, Armenia, 0025
Marr street, 16, apt. 5, Yerevan, Armenia, 0079
Loutrakiou, 5, CHARA VENEZIA BUILDING, 1st floor, Office 101, Nicosia, Cyprus, 2027
Zolotukhin & Partners corporation LTD
LLC "Ranks AAA" does not provide brokerage services and does not take funds into trust management.
Legal Entity Code:53125283 Insurer code: 43715106 registered in Ministry of Justice Republic of Armenia.
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