Whether you're a business owners or a personal finance enthusais, you should know how to calculate cash flow so you can make the best money decisions.

Present value = $75 ÷ 1.21 Present value = $61.98 Thus, the second-year free cash flow of $75 is equivalent to having $61.98 in hand today, assuming we can earn a 10% return on our money.

Free cash flow (FCF) is the amount of money a company has that exceeds the amount needed to sustain and grow the business.

The free cash flow (FCF) formula calculates the amount of cash left after a company pays operating expenses and capital expenditures. Learn how to calculate it.

Present value = $75 ÷ 1.21 Present value = $61.98 Thus, the second year free cash flow of $75 is equivalent to having $61.98 in our hands today, assuming we can earn a 10% return on our money.

How to Calculate Free Cash Flow. The free cash flow of a small business determines how much cash the company has left over at the end of the year after accounting for its expenses.

Strong free cash flow can indicate that a company is … Continue reading ->The post How to Calculate Free Cash Flow (FCF) appeared first on SmartAsset Blog.

Free cash flow yield measures a company's cash generation relative to its market value, helping investors assess financial health and potential.

To calculate free cash flow in this case you just take “net cash provided by operating activities” (yellow) and subtract “additions to property and equipment” (green).