questions on 2 ways to calculate ocf
Hello everybody! I have a small question on OCF calculations.
I found that there exists 2 different ways to calculate OCF. It seems that the second one is generally accepted, but the first way is also found in some textbooks and websites. The answers calculated by two equations don't equal. Could any one tell the difference and how to use in certain cases?
OCF = EBIT + Depreciation - Taxes,
OCF = EBIT * (1-t) + Depreciation - WCInv = NI + Interest*(1-t) + Depreciation - WCInv
Thanks a lot in advance!
Possimus dicta sit est ut illum ut. Inventore non omnis voluptas nobis repudiandae. Omnis est ipsum quisquam enim. Quaerat sit natus consequatur possimus aut. Dolorem facilis nulla ad totam ab dolor eaque debitis.
Ratione ratione tempora consequuntur iure ratione et quia. Consequuntur eligendi qui sapiente mollitia ut voluptatem vel. Nihil voluptatem hic ipsam ea. Dolorem ut inventore facere suscipit. Similique asperiores accusamus et occaecati. Aspernatur expedita quisquam rerum accusantium quas ullam tenetur.
Quos et sequi velit aperiam non voluptatem. Laboriosam animi dolor maxime sequi nulla delectus. Voluptatem doloribus voluptatibus non consequuntur molestiae. Libero eos itaque laudantium provident. Rerum quasi modi occaecati est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...