Background Note | HBS Case Collection | October 2005 (Revised February 2010)

Calculating Free Cash Flows

by Robin Greenwood and David S. Scharfstein


Outlines the mechanics of calculating free cash flows from historical and proforma financial statements. Focuses on the mechanical process of transforming numbers from financial forecasts into cash flows.

Keywords: Financial Statements; Forecasting and Prediction; Cash Flow; Mathematical Methods;


Greenwood, Robin, and David S. Scharfstein. "Calculating Free Cash Flows." Harvard Business School Background Note 206-028, October 2005. (Revised February 2010.)