Workingcapital
Why not subtracting working capital itself instead of changes in working capital in the calculation on the FCF ?
Thanks
Why not subtracting working capital itself instead of changes in working capital in the calculation on the FCF ?
Thanks
Career Resources
The way I understand it is when you subtract the increase in working capital, you are accounting for a decrease in cash flow since an increase in working capital means you increased your current assets or decreased your current liabilities, both of which are uses of cash.
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