FCFE Calculator
FCFE Calculator
Component |
Description |
Net Income |
The total income earned by a company after taxes and expenses. |
Capital Expenditures |
The total amount spent on acquiring or maintaining fixed assets. |
Change in Working Capital |
The change in a company’s current assets and current liabilities. |
Debt Issued |
The total amount of new debt issued by a company. |
Debt Repaid |
The total amount of debt repaid by a company. |
Free Cash Flow to Equity (FCFE) |
The cash flow available to equity shareholders after accounting for capital expenditures, working capital changes, and debt payments. |
Formula |
FCFE = Net Income – Capital Expenditures + Change in Working Capital + Debt Issued – Debt Repaid |
Purpose |
Used to measure the cash flow available to equity shareholders for dividends and reinvestment. |