Net operating cash flow net

badonkus

is net operating cash flow=EBIT(1-T)+D or EBIT(1-T), when we calculate EVA, we use EBIT(1-T), is it net operating CF?

ap0258

EBIT x (1-T) is (net) operating profit after taxes, it is not cash flow

busterbluth

I got this concept fixed the past 2 days

EVA after cashflow is NOPAT + Depreciation (and NCC - non cash charge I presume)
Operating Cashflow = NI + Int(1-t) - NWC + NCC
Cashflow from Operations = NI +NCC - NWC

Correct me if I'm wrong.

genuinecfa

so in net operating cash flow, there is no tax shield, and borrowing under MM theory with tax will not increase net operating cash flow?

b_sea93

I would imagine net operating CF is after all deductions are taken off CF, such as Dep. and taxes. So yeah I believe it is EBIT(1-T). Can anyone confirm?