When calculating FCFF, if you identify i) options based compensaiton, ii) impairment to goodwill or inventories, or iii) translation gains or losses – do any of these need to be backde out in calculating Non-Cash charges?
NCC to be Added Back to FCFF are: Depreciation & Amortization Restructuring charges (expenses) Losses from impairment Amortization of Bond Discounts NCC to be Subtracted from FCFF are: Reversals of restructuring reserves Non-cash related Gains Amortization of Bond Premiums
ramdabom Wrote: ------------------------------------------------------- > When calculating FCFF, if you identify i) options > based compensaiton, ii) impairment to goodwill or > inventories, or iii) translation gains or losses > – do any of these need to be backde out in > calculating Non-Cash charges? If they are not cash add them if they were charges, and deduct them if they were gains.
Another NCC to consider is Income from Affiliate.
It’s a non-cash revenue, so subtract it to get to CFO.