The Patch

Balance sheet calculations

Free Cash Flow (”FCF”) = Cash from Operations - Capital Expenditures. (or see Morningstar 10 year cash flows)

Cash Return on Invested Capital (”CROIC”) = FCF / (Total Equities + Total Liabilities - Current Liabilities)

Inventory Turn = Cost of Goods Sold (”COGS”) / [(beginning inventory + ending inventory) /2]. (or see Morningstar Effiency Ratios)