Funds from Operations (FFO)
Cash flow from operations
changes in
Trade receivables
Inventories
Trade payables
Funds from Operations	0
Retained Cash Flow (RCF)
Funds from Operations	0
less
Dividends paid
Retained Cash Flow	0
Free Cash Flow (Moody's credit definition)
Cash flow from operations	0
less
Dividends paid
Capex
Credit FCF	0
Free Cash Flow (corporate finance approach)
EBIT
less
(calculate effective tax rate)
Tax
NOPLAT	0
add back
Depreciation and amortisation
Other non-cash expenses
deduct investment
Capex
change in Operating Working Capital
Free Cash Flow	0
Cash Flow Available for Debt Service (CFADS)
EBITDA
deduct Cash Tax
deduct Dividends paid
deduct Capex
change in Operating Working Capital
CFADS	0

Case Company Financials Income Statement Revenues Operating expenses Other income EBITDA Depreciation Amortisation EBIT Interest income Interest expense Pre-tax profit Tax expense Profit for the Year 16,821 -14,880 298 2,239 -461 -78 1,700 228 -704 1,224 -191 1,033 Operating lease rental expense Multiple Balance Sheet -287 6.OX Non-current assets Intangibles PP&E Right of use assets Financial assets Other non-current assets 10,658 2,365 1,722 245 1,902 16,892 Current assets Trade receivables Inventories Cash Other current assets 5,177 774 3,232 393 9,576 Total assets 26,468 Non-current liabilities Borrowings Right of use liabilities Provisions Pension liabilities Other non-current liabilities 3,618 1,722 427 4,240 1,536 11,543 Current liabilities Loans and overdrafts Trade payables Provisions Other current liabilities 785 7,740 334 448 9,307 Total liabilities 20,850 Equity Share capital & premium Other reserves Retained earnings Total equity 1,408 6,481 -2,271 5,618 Total liabilities & equity 26,468 761 Notes Total provisions Provisions relating to legal cases Current portion of long-term debt 506 785 Cash Flow Statement 1,033 461 78 Profit for the Year Depreciation Amortisation (increase)/decrease in working capital Trade receivables Inventories Trade payables Other adjustments Cash flows from operations -757 -16 530 -129 1,200 Capex (PP&E and Intangibles) Impact of other investing activities Cash flows from investing -497 156 -341 Dividends paid Impact of other financing activities Cash flows from financing -731 -201 -932 Opening cash Change in cash Closing cash 3,305 -73 3,232 Case Company Financials Income Statement Revenues Operating expenses Other income EBITDA Depreciation Amortisation EBIT Interest income Interest expense Pre-tax profit Tax expense Profit for the Year 16,821 -14,880 298 2,239 -461 -78 1,700 228 -704 1,224 -191 1,033 Operating lease rental expense Multiple Balance Sheet -287 6.OX Non-current assets Intangibles PP&E Right of use assets Financial assets Other non-current assets 10,658 2,365 1,722 245 1,902 16,892 Current assets Trade receivables Inventories Cash Other current assets 5,177 774 3,232 393 9,576 Total assets 26,468 Non-current liabilities Borrowings Right of use liabilities Provisions Pension liabilities Other non-current liabilities 3,618 1,722 427 4,240 1,536 11,543 Current liabilities Loans and overdrafts Trade payables Provisions Other current liabilities 785 7,740 334 448 9,307 Total liabilities 20,850 Equity Share capital & premium Other reserves Retained earnings Total equity 1,408 6,481 -2,271 5,618 Total liabilities & equity 26,468 761 Notes Total provisions Provisions relating to legal cases Current portion of long-term debt 506 785 Cash Flow Statement 1,033 461 78 Profit for the Year Depreciation Amortisation (increase)/decrease in working capital Trade receivables Inventories Trade payables Other adjustments Cash flows from operations -757 -16 530 -129 1,200 Capex (PP&E and Intangibles) Impact of other investing activities Cash flows from investing -497 156 -341 Dividends paid Impact of other financing activities Cash flows from financing -731 -201 -932 Opening cash Change in cash Closing cash 3,305 -73 3,232