# FCF Calculation Discrepancy

I'm trying to calculate the Free Cash Flow (FCF) for a some public companies. My understanding is that the FCF formula is:

``````FCF = [Operating Income] - [Taxes] + [D&A] - [Chg in NWC] - [CapEx]
``````

I am using Seeking Alpha's financials to calculate the FCF for Kroger (Symbol:KR) FY ending 1/31/16. I noticed that on the Cash Flows tab, Seeking Alpha calculates the FCF for you, but since I'm learning, I tried it myself. However, I couldn't come up with the same result, as below (in millions USD)...

``````FCF = 3,622 - 1,045 + 2,089 - (-111) - 3,349
FCF = 1,428
``````

Seeking Alpha's FCF calculation shows: Levered FCF = 1029.5 Unlevered FCF = 1,330.8

I even tried checking it with the "shortcut" formula:

``````FCF = [Operating CF] - [CapEx]
FCF = 4,917 - 3,349
FCF = 1,568.0
``````

Questions

1. How is Seeking Alpha calculating the value they are getting? I'm using their numbers...
2. Am I calculating the FCF correctly? I want to be able to know what goes into FCF calculation to be able to more accurately understand how to project future FCFs.

Thank you!

• You could ask SA how they're calculating it... Commented Dec 10, 2020 at 4:19