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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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
