Fin 449 week 2
Cash Flow Data (PEP example)
| PEP | CAT | F | HBI | DRI | CMG | BLMN | TGT | KR | WMT | COST | |
| 10-k filing date | 2/13/20 | 2/19/20 | 2/5/20 | 2/11/20 | 7/24/20 | 2/5/20 | 2/26/20 | 3/11/20 | 4/1/20 | 3/20/20 | 10/7/20 |
| Year Ended… | 12/28/19 | ||||||||||
| Shares Outstanding | 1,389,544,618 Michael Dimond: From 10-k, front page. Not in millions. |
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| Figures in… | millions | ||||||||||
| OpInc = Operating Profit | 10,291 Michael Dimond: From Income Statement |
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| Effective Tax Rate (t) | 21% Michael Dimond: Computed from Income Statement |
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| NOPAT = OpInc x (1-t) | 8,126 Michael Dimond: Computed | Net Operating Profit After Taxes | |||||||||
| Dep & Amort Exp | 2,432 Michael Dimond: From Statement of Cash Flows |
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| OCF = NOPAT + Dep & Amort | 10,558 Michael Dimond: Computed | Operating Cash Flow | |||||||||
| ΔNOWC | 1,575 Michael Dimond: From Balance Sheet | Change (this year minus previous year) in Net Operating Working Capital … CA - CL, but only the operating items | |||||||||
| ΔGFA | 3,973 Michael Dimond: From Balance Sheet & "Note 4 — Property, Plant and Equipment and Intangible Assets" | Change in Gross Fixed Assets … How Much Did the Company Pay For Long Term Operating Assets … Change in Net Fixed Assets, add Depreciation Expense | |||||||||
| FCFF = OCF - ΔNOWC - ΔGFA | 5,010 Michael Dimond: Computed | Free Cash Flow to the Firm = OCF minus Reinvestment Need | |||||||||
| Interest Expense, net | 935 Michael Dimond: From Income Statement |
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| FCFF | 5,010 Michael Dimond: From above |
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| ΔDebt | (253) Michael Dimond: From Balance Sheet | This year minus previous year, ST and LT items which are debt | |||||||||
| Int(1-t) | 738 Michael Dimond: Computed | Interest After Taxes | |||||||||
| PfdCF | - Michael Dimond: From Statement of Shareholders' Equity | Pfd = Preferred, PfdCF = Preferred Cash Flow… any Cash going out to Preferred Shareholders | |||||||||
| FCFE = FCFF + ΔDebt - Int(1-t) - PfdCF | 4,019 | Free Cash Flow to Equity, Equity Cash Flow…going to Common Shareholders | |||||||||
| FCFF | 5,010 Michael Dimond: From above |
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| Int(t) | 197 Michael Dimond: Computed | Tax Benefit… comes from tax savings due to interest paid | |||||||||
| UCF = FCFF + Int(t) | 5,207 Michael Dimond: Computed | Unlevered Cash Flows, used in the Adjusted Present Value Method (APV Method) |