What is Cash Flow Calculator?
Calculate operating cash flow, free cash flow, and cash flow ratios from your business financials Simply enter your values, and the calculator instantly computes accurate results using standard financial formulas. All calculations are performed entirely in your browser — nothing is stored or transmitted.
Formula Used
Operating Cash Flow shows cash generated from core business operations (more reliable than net profit which can be manipulated). FCF is what remains after maintaining/growing assets — this is the cash available for dividends, debt repayment, or reinvestment.
How to Use This Calculator
- Enter net profit for the period
- Enter depreciation and amortization (non-cash expense to add back)
- Enter change in working capital (increase = negative, decrease = positive)
- Enter capital expenditure (CAPEX) for the period
- Click Calculate to see operating cash flow and free cash flow
Worked Example
Net Profit: ₹50L | Depreciation: ₹15L | Working Capital Increase: −₹10L | CAPEX: ₹20L → Operating CF: ₹55L | Free Cash Flow: ₹35L
Why Use This Tool?
- Verify if reported profits translate to actual cash generation
- Identify cash-generating businesses vs profit-only businesses
- Calculate FCF yield to value businesses compared to earnings
- Find operational inefficiencies through working capital changes
Frequently Asked Questions
Why is Cash Flow more important than Net Profit?
Profit can be manipulated through accounting (revenue recognition, depreciation choices, provisioning). Cash flow cannot — cash either came in or it did not. Companies with high profit but negative operating cash flow are red flags. Successful long-term investing focuses on FCF generation.
What is a good Free Cash Flow for a company?
FCF Yield = FCF / Market Cap × 100. Yield above 5% is generally attractive (like a 5%+ interest on your investment). Companies like TCS, Infosys, HUL consistently generate FCF yields of 3-5%, which combined with growth justifies premium valuations. Negative FCF companies need funding to grow.
How do I find cash flow data for analysis?
Look at the Cash Flow Statement in the company's Annual Report or quarterly results. It has three sections: Operating Activities, Investing Activities, and Financing Activities. Operating CF (indirect method) starts with net income and adjusts for non-cash items and working capital changes.
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