Question
Based on historical financial data, find FCF for the company of your choice. In week 1 please choose a publicly traded company and submit its
Based on historical financial data, find FCF for the company of your choice.
In week 1 please choose a publicly traded company and submit its name for instructor's approval. Please do not choose a company which became public less than 3 years ago. It is also a good idea to choose a company that is already paying dividends on regular basis.
Download annual financial data for the last 5 years from Edgar Website (forms 10-K). Attention: if your company became public less than 5 years ago, you will also have to download data from its IPO filing prospectus (form 424B4)
Using approach similar to the one described in this module's Excel file you will have to calculate the FCF for the company of your choice. I suggest starting from the FS to FCF Practice Template and adjust it accordingly
My company is Apple.
| Financial Data | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Assets | ||||||
| Cash & Short Term Investments | ||||||
| Short-term Investments | ||||||
| Receivables | ||||||
| Inventories | ||||||
| Prepaid Expenses | ||||||
| Total Current Assets | ||||||
| Net Property, Plant & Equipment | ||||||
| Total Assets | ||||||
| Liabilities | ||||||
| Accounts payable | ||||||
| Current maturities of long-term debt | ||||||
| Income taxes payable | ||||||
| Total current liabilities | ||||||
| Long-term debt | ||||||
| Total Liabilities | ||||||
| Total stockholders equity (deficit) | ||||||
| Total Liabilities & Shareholder's Equity | ||||||
| Income Statement | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Revenue | ||||||
| Total revenues | ||||||
| Expenses | ||||||
| Cost of Goods Sold | ||||||
| General, administrative and other | ||||||
| Depreciation and amortization | ||||||
| Total expenses | ||||||
| Operating income | ||||||
| Interest expense | ||||||
| Income before income taxes | ||||||
| Income tax benefit (expense) | ||||||
| Net income | ||||||
| Dividends Paid | ||||||
| Non-distributed Income | ||||||
| Find Changes in NWC | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Current Assets, other than Cash and Marketable Securities | ||||||
| Current Liabilities, excluding Debt | ||||||
| Net Working Capital (CA-CL) | ||||||
| Change in NWC (NWC Investment) | ||||||
| Find CapEx | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Net Property, Plant & Equipment | ||||||
| Depreciation and amortization | ||||||
| Capex | ||||||
| You can read more using the following link | Howard Keen, Clearing Up Confusion over calculation of FCF. | |||||
| Estimate FCF | ||||||
| Tax Rate | ||||||
| Year | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| EBIT | ||||||
| EBIT(1-T) = NOPAT | ||||||
| Plus: Depreciation Expense | ||||||
| Less: CAPEX | ||||||
| Less: Working Capital Investment | ||||||
| Firm Free Cash Flow | ||||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
