How do I calculate a company's net income for the year? Net cash flow? Net operating profit after taxes (NOPAT)? Operating cash flow? Free cash flow (FCF) for the year? Economic Value Added (EVA)?
GeorgeNor
[email protected]
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How do I calculate a company's net income for the year? Net cash flow? Net operating profit after taxes (NOPAT)? Operating cash flow? Free cash flow (FCF) for the year? Economic Value Added (EVA)?
GeorgeNor
[email protected]
1.Look at the bottom line of the income statement and you will see net income.
2.roughly, the net cash flow = net income + depreciation + amortization.
3. NOPAT = net income + Interest(1- Tax rate) or use EBIT x (1-T)..
4. Operating cash flow, you can look directly in the cashflow statement of the company.
5. EVA = NOPAT - (WACC x Investment Capital),
and Investment Capital = Equity + long-term debt
WACC = Weight average cost of capital.
Actually, cash flow can be determined by several method. The one that I give you in 2. is just the rough method. I you want more explanation, please ask me again.
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