This document discusses various types of free cash flow metrics used to evaluate a company's financial performance and flexibility. It defines free cash flow, free cash flow per share, free cash flow to equity, free cash flow yield, free cash flow to sales, and unlevered free cash flow. Formulas are provided for calculating each metric.

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.