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Hatem Elghamry
by Hatem Elghamry , Regional Manager, Audit & Investigation Service , Government of New Brunswick

Hello,

 

It's a masure of how much cash can company paid to equity shareholders after deductiuing all expenses and debt repayment.

 

It calculated as below:

 

FCFE = Net Income - Net Capital Expenditure - Change in Net Working Capital + New Debt - Debt Repayment 

The formula for free cash flow to equity is net income minus capital expenditures minus change in working capital plus net borrowing.

The free cash flow to equity formula is used to calculate the equity available to shareholders after accounting for the expenses to continue operations and future capital needs for growth.

Deleted user
by Deleted user

agreed with all

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