How to Calculate Free Cash Flows of a Company

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3 жыл бұрын

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Пікірлер: 46

@ramnikjain5187 20 күн бұрын

Best educational video I have ever seen. Well done. Keep it up.

@thewallstreetschool 14 күн бұрын

Glad you liked it!

@jjholmes8530 Жыл бұрын

I forgot when the interviewer asked me whether interest will be deducted along with debt repayments from fcff to reach fcfe🤦‍♂🤦‍♂. Got the answer now. Thanks.

@pratyush8763 2 жыл бұрын

Very well explained, thank you

@tanishsadhwani730 2 жыл бұрын

Thank you so much.. Wonderfull video

@sharvaripawar6941 3 жыл бұрын

Very useful 👍 thanks

@MrVeer58 3 ай бұрын

Many thanks for explaining and showing the calculations in Excel.

@thewallstreetschool 3 ай бұрын

You are welcome!

@RkChintamani 2 жыл бұрын

Very good video, 👍 kindly do more video on balance sheet analysis and ratio

@gyanvianeja9461 2 жыл бұрын

I think while considering fcff, tax on interest expense should also be considered, like depreciation, it is also savings taxes.meaning thereby more cash in the hands of firm.

@fedelicskaaria7289 Жыл бұрын

Great Video

@Hemant-RK 2 жыл бұрын

Awesome thanks

@sriharij4596 Жыл бұрын

Very good video, I learnt something. Why did you ignore other income in Cash flow ? Is it bcoz they are inorganic income !

@avinashkarle5426 3 жыл бұрын

sir please do vedio on forecast of future cash flow calculation

@vinaykhanna7275 2 жыл бұрын

Lever doesn't have any loan and there is hardly any Capital investment. They don't have any subsidiary also. There main expenditures are in ADVERTISING AND ROYALTY PAYMENT

@akshaychallani2542 Жыл бұрын

Please clarify on why it's (1-33%)

@sachinbhawnani2481 2 ай бұрын

Sir, I think there is always some difference between EBIT and operating profit . In EBIT we add the revenue from operation as well as other income but in operating profit we only include revenue from operations

@dhruvsachdeva4973 2 жыл бұрын

query : if fcff is negative for a company and amount paid to debt holder is negative , then calculation error occurs on subtracting . for example if c11 was negative and c14 being negative , shouldnt we add them rather than subtracting ?

@sandeshshetty6888 5 ай бұрын

I believe should have to add to get to FCFE

@shubhamnimje419 2 жыл бұрын

Didn't get why he has deducted interest as a percentage of tax rate. Can someone plz explain?

@pavanshurpali9557 2 жыл бұрын

Sir I didn't understand how you took 33% for 2009 Wala period can u please explain little bit more sir🙏🙏🙏

@Deepak-Raghav Жыл бұрын

Sir, in last formula it should be added not deducted.

@zigggzaggg Жыл бұрын

u said no debt so no interest while calculating taxes for EBIT, then why are you subtracting less amount paid to debtholders ?? can anyone explain

@adityamanral2966 2 жыл бұрын

Should have clarified why we added interest with 1-tax , because the sign of interest payment was negative.

@soniabajaj3098 2 жыл бұрын

Sir didn't understood the 33% interest part.

@BlueHoodieStudios 2 жыл бұрын

FCFE should be lower than FCFF, something went wrong with the formula.

@angelmaravilla4708 Жыл бұрын

I haven't seen the video, so the following statement not necessarily apply to this example, but: FCFE can be larger than FCFF when a company's "debt issued" in a specific periodo were larger than the "debt repayment" (FCFF doesn't consider the financial inflow, and FCFE does)

@pratyush8763 Жыл бұрын

I think investment in working capital you have done opposite of what it should be.. please recheck and confirm..

@SonjoeJoseph 3 жыл бұрын

While calculating the amount paid to Debt holders in the video ur mentioning to sum up Financial liabilities, Proceeds from borrowings, Repayment of borrowings & Other financing items. But while u have done the calculation u have left out the Repayment of borrowings is this an error. Do clarify?

@vaibhavnamitajain 3 жыл бұрын

Check closely. Cell B39 is added in the formula.

@akshaychallani2542 Жыл бұрын

@@vaibhavnamitajain u look closely dude.. He has not added B39, He has clicked on that, but b4 putting choma, he had added the next 1 which is b41..the creator of the video has done the biggest flaw here..thats y FCFE is coming more than FCFF.. Because REPAYMENT OF BORROWINGS is not taken.. Please calculate in excel by urself & check & than reply..

@iOmKumar03 Жыл бұрын

Last part why (1-33(

@vinaykhanna7275 2 жыл бұрын

Waiting for your RELIANCE BALANCE SHEET REVIEW.

@kevalgala3925 3 жыл бұрын

Why was interest not considered for calculating FCFF while it was considered for calculating FCFE?

@vaibhavnamitajain 3 жыл бұрын

Because FCFF is the amount available to debt holders + equity holders & since interest is an item which is paid to debt holders, it is not deducted to calculate FCFF. Similarly, since FCFE is the amount available to only equity holders & interest payment doesn't belong to them, it is deducted.

@asdi1983 2 жыл бұрын

@@vaibhavnamitajain but he has deducted extra amount of tax on interest

@shubhamnimje419 2 жыл бұрын

@@vaibhavnamitajain Didn't get why he has deducted interest as a percentage of tax rate. Can someone plz explain?

@vinaykhanna7275 2 жыл бұрын

Take the example of Reliance and show your knowledge. You have taken the easiest Company

@mayanksharma266 3 жыл бұрын

Sir i have completed my b. Com and mcom will it be fruitful for me to learn financial modelling

@syedshahanrehman7508 3 жыл бұрын

Yes of course

@MsAzizrahman Жыл бұрын

First of all, really appreciate your work, very helpful, however, at 22.21 the FCFE calculation is not correct. Proceeds from borrowings +1281 + Repayment of borrowings -949 + Other financial liabilities -204 + financial liabilities 0 = total should be +128. Could you please elaborate on the calculation of 1077?

@ShaikhNadeem Жыл бұрын

Same confusion is with me.. How come he has arrived on that figure?

@deepakkumar-nc5mk Жыл бұрын

Absolutely

@pullenbalochistan1955 Жыл бұрын

Depreciation ko Less kar ke hi operating profit aata hai..q ke depreciation operating expense hai..aur ap pher less karo rahe ho depreciation ko jo already less ho choka hai ...? Why

@ideaawesome Жыл бұрын

yes, same confusion. why depri less on EBITDA..,,

@purudate4049 10 ай бұрын

Rudimentary presentation. You could have compressed entire presentation to less than 10 minutes of capture. I strongly recommend you to replace this clip with far better sleek presentation. You have wasted time in editing the spreadsheet, typo errors which spoils the attention.