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TomG uses one which is good too.

It is Net income + depreciation +/- one time events - capital expenditures.


I have a question about the formula which TomG uses. It concerns the capital expenditures part. It would seem to me that one should only subtract those capital expenditures which are related to operations and not subtract those that are strictly being used for growth. Then one gets a truer picture of the cash being generated by the business. Does this make sense or am I missing something?

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