There are multiple ways to calculate OCF,
including:
OCF = EBIT + Depreciation – Taxes
OCF = Net Income + Depreciation
OCF = (Sales-Expenses-Depreciation(*(1-T)
+ Depreciation
OCF = (Sales – Expenses)*(1-T) +
(Depreciation)*(T)
Note OCF reflects data from the income
statement,.. balance sheet changes like NWC and ATSV are not included in its
calculation.
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