1. Management Control System
Free Cash Flow

2. Group Members
Neelam Chhipa
Swati Kamthe
Manju Naicker
Princy Philip
Ashish Nimbalkar

3. Introduction
 Measure of financial performance.
 A company is able to generate after laying out.
 Free cash flow is important.
 Without cash, it's tough to develop new products.
 FCF is calculated as:
EBIT(1-Tax Rate) + Depreciation & Amortization -
Change in Net Working Capital - Capital Expenditure.

4.  Another way of calculating FCF.
 It is important to note that negative free cash flow.
 Company is making large investments.
 The strategy has the potential to pay off in the long
run.

5. Free Cash Flow For The Firm
 Measure of financial performance
that expresses.
 Calculated as:
FCFF = Operating cash flow- Expenses-
Taxes- Change in NWC- Change in
Investment.

6. Free Cash Flow Per Share
 Measure of a company's financial flexibility
 A proxy for measuring changes in earnings per
share.
 Calculated as:

7. Free Cash Flow To Equity
 How much cash can be paid to the equity shareholders
 FCFE is often used
 Calculated as:
FCFE = Net Income - Net Capital Expenditure -
Change in Net Working Capital + New Debt - Debt
Repayment

8. Free Cash Flow Yield
 An overall return evaluation ratio of a stock.
 Expected to earn against its market price per
share.
 Calculated as:

9. Free Cash Flow To Sales
 Ratio that illustrates the percentage of free cash flow
to the amount of sales
 Calculated as:
Free Cash Flow To Sales = Free Cash Flow
------------------- * 100
co’s annual sales

10. Unlevered Free Cash Flow
 Before interest payments are taken into account
 Calculated as:
Unlevered Free Cash Flow = EBITDA - CAPEX -
Working Capital – Taxes
 Between unlevered cash flow and leveraged cash flow
 Company is more likely to run into problems if revenue
streams dry up.