To calculate Free Cash Flow (FCF) using Operating Cash Flow (OCF), begin by determining OCF, which is typically found in a company’s cash flow statement and represents cash generated from core business operations. Subtract capital expenditures (CapEx) from OCF, where CapEx includes investments in property, equipment, or other assets necessary for maintaining or expanding operations. The resulting figure represents the amount of cash available for debt reduction, shareholder distributions, or reinvestment in the business.
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