Here is the formula: EBIT (1-tax rate) + (depreciation) + (amortization) - (change in net working capital) - (capital expenditure)
I understand that you take the operating earnings then subtract capex and change in net working capital but it doesn't make sense to me that you would add depreciation and amortization instead of subtracting it. You gain more free cash flow by paying for an expense that you are amortizing?
Submitted May 06, 2018 at 09:01AM by Azerty800 https://ift.tt/2rnm38u
