Create an account
managers ability to generate operating income (EBIT) with operating assets under their control
the working capital acquired with investor supplied funds. operating current assets minus operating current liabilities
better measurement for comparing managers performance, it is the amount of profit a company would generate if it had no debt and held no financial assets
the cash actually available for distribution to investors after the company has made all the investments in fixed assets and working capital necessary to sustain ongoing operations
pay interest to debt holders, repay debtholders, pay dividends to shareholders, repurchase stock from shareholders, buy short term investments or other nonoperating assets
cash flow available for distribution to investors, the value of a firm primarily depends on its expected future FCF
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