Walk Me Through How You Get From Revenue To Free Cash Flow In The Pro

1.	Walk Me Through How You Get From Revenue To Free Cash Flow In The Projections?
Answer» Subtract COGS and Operating EXPENSES to get to Operating Income (EBIT). Then, multiply by (1 - Tax Rate), add back Depreciation and other non-cash charges, and subtract Capital Expenditures and the change in WORKING Capital. Note: This gets you to Unlevered Free Cash Flow since you went off EBIT RATHER than EBT. You might WANT to confirm that this is what the interviewer is asking for. Subtract COGS and Operating Expenses to get to Operating Income (EBIT). Then, multiply by (1 - Tax Rate), add back Depreciation and other non-cash charges, and subtract Capital Expenditures and the change in Working Capital. Note: This gets you to Unlevered Free Cash Flow since you went off EBIT rather than EBT. You might want to confirm that this is what the interviewer is asking for.

Walk Me Through How You Get From Revenue To Free Cash Flow In The Projections?

Answer»

Subtract COGS and Operating EXPENSES to get to Operating Income (EBIT). Then, multiply by (1 - Tax Rate), add back Depreciation and other non-cash charges, and subtract Capital Expenditures and the change in WORKING Capital.

Note: This gets you to Unlevered Free Cash Flow since you went off EBIT RATHER than EBT. You might WANT to confirm that this is what the interviewer is asking for.

Subtract COGS and Operating Expenses to get to Operating Income (EBIT). Then, multiply by (1 - Tax Rate), add back Depreciation and other non-cash charges, and subtract Capital Expenditures and the change in Working Capital.

Note: This gets you to Unlevered Free Cash Flow since you went off EBIT rather than EBT. You might want to confirm that this is what the interviewer is asking for.

Discussion

No Comment Found

Related InterviewSolutions

What Types Of Sensitivity Analyses Would We Look At In A Dcf?
Why Would You Not Use A Dcf For A Bank Or Other Financial Institution?
What Should You Do If You Don't Believe Management's Projections For A Dcf Model?
How Do You Calculate Wacc For A Private Company?
What About A 1% Change In Revenue Vs. A 1% Change In The Discount Rate?
Which Has A Greater Impact On A Company's Dcf Valuation - A 10% Change In Revenue Or A 1% Change In The Discount Rate?
Two Companies Are Exactly The Same, But One Has Debt And One Does Not - Which One Will Have The Higher Wacc?
How Can We Calculate Cost Of Equity Without Using Capm?
Cost Of Equity Tells Us What Kind Of Return An Equity Investor Can Expect For Investing In A Given Company - But What About Dividends? Shouldn't We Factor Dividend Yield Into The Formula?
What's The Relationship Between Debt And Cost Of Equity?