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    GeorgeNor's Avatar
    GeorgeNor Posts: 1, Reputation: 1
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    #1

    Oct 4, 2007, 04:58 PM
    How to calculate
    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
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    ake_finance's Avatar
    ake_finance Posts: 19, Reputation: 1
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    #2

    Oct 5, 2007, 10:57 AM
    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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