Cash Flow to Firm (CFF) is the cash that a company gets from its main activities before paying any interest or taxes. It shows how much money the company can use to pay its debt or invest in new projects. It can help measure how much cash the company generates from its operations.
The formula for CFF is:
FCFF = Cash from Operating Activities + Interest Expense * (1 - Effective Tax Rate / 100)
Where:
- Cash from Operating Activities is CF015,
cf_cash_from_oper
- Interest Expense is IS014,
is_int_expense
- Effective Tax Rate is R0033,
eff_tax_rate