Pick one company and use the company’s most recent financial statements to compute its free cash flow.

Free Cash Flows (FCF)

We learn to use free cash flows (FCF) to evaluate a firm. It is important to know how free cash flow is defined. In this assignment, pick one company and use the company’s most recent financial statements to compute its free cash flow. Free cash flow is defined as following.
FCF = Operating cash flow – Investment in working capital – Investment in fixed assets
Operating cash flow = EBIT + Depreciation – Tax
Investment in working capital = NWC this year – NWC last year = (CA – CL) this year – (CA – CL) last year
Investment in fixed assets = Net fixed assets this year – Net fixed assets last year + Depreciation