When performing the following to determine free cash flow:
Free Cash Flow = Operating Cash Flow - Capital Expenditures
Do I include only Capital Expenditures (13,732 in the example below), or do I also include Capitalized software expenditures, cash paid for acquisitions, and Other items, net?
This obviously makes a big difference in the calculation.
Capital expenditures (13,732) Capitalized software expenditures (26,916) Cash paid for acquisitions 0 Other items, net (143) Cash used for investing activities (40,791)
Some of the financial APIs I am pulling data from vary greatly in the returned capex dollar amount. Some include Capitalized software expenditures, others don't include it but include Cash paid for acquisitions and Other Items, net. None of the APIs I have looked at include everything.
If everything, why wouldn't the equation be?
Free Cash Flow = Operating Cash Flow - Cash used for investing activities
I understand there are other equations to determine this. I'm specifically asking about this.