What is net operating working capital?
What is total operating capital?
What is NOPAT?
What is free cash flow? Why is free cash flow the most important
determinant of a firm’s value?
A company has NOPAT of $30 million, and its depreciation and
amortization expense is $10 million. During the year the company’s
gross capital expenditures (total purchases of fixed assets) were $20
million and its net operating working capital increased by $10
million. What is the company’s operating cash flow? ($40 million)
What is its free cash flow?
