FCF vs FCFF - Quckie.....


Is the difference between these simply that for FCF - NOPLAT adds Change deferred taxes??? What does that help us understand… Any insight would be greatly appreciated, cheers

For WC in the FCF formula, do we exclude cash and cash equivalents like we do for FCFF and FCFE??

Can someone please, please help with the above

Cash and cash equivalents are not part of WC, don’t include them in the calculation of FCF.

FCF= Operating Cash Flow – Cash from Investing Activities

FCFF = Operating Cash Flow + [Interest *(1- tax)] – Capex

Thanks shootforthestars1…I know what FCFF but didnt even think of FCF.

I will add that to the list of stuff FCF = OCF - CFI

Thanks guys, I just got concerned in particular with the WCINV as there was an example in CFA practice exam I did yesterday and they used CA - CL when calculating WCINV as party of FFO. They did the same again on the examle for FFO provided in the text book… So I thought here we go, something else I could be caught out on… Mind you both examples did not include cash and cash equivalents in their reporting - for now I will continue to remove cash etc if have the ability to do so. Cheers again for your help, this had been worrying me, cheers