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This is the first time I have tried to calculate free cash flow. It is for the company, ATMS, for the most recent quarter of Mar '00 using the 10Q's for Dec '99 and Mar '00. Would someone kindly check my figures and also help me put the results in perspective, i.e., strong, weak, neutral FCF, etc.?

Thank you.


Here's what I calculated for free cash flow for the quarter ending Mar '00 for ATMS:

Mar '00

Cash 1,126,713
AR 17,579,488
Inv 10,200,163
AP (7,003,830)
= 19,837,391 Net Operating Working Capital
PPE 1,615,045
= 21,452,436 Total Operating Capital

Dec '99

Cash 3,796,083
AR 12,534,226
Inv 8,368,175
AP (4,626,788)
= 17,870,486 Net Operating Working Capital
PPE 1,915,585
= 19,786,071 Total Operating Capital

NOPAT*(1-tax rate)= 3,916,344x68%= 2,584,787

Net Investment in Operating Capital=
21,452,436 - 19,786,071 = 1,666,365

FCF = 2,584,787 - 1,666,365 = $918,422

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