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Kodiak co dec 09

This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.

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August 18, 2018 at 9:20 pm #468428
sid18
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Interest is already deducted from operating profit to calculate tax. Then why again interest is deducted from operating profit to find FIFE.
August 19, 2018 at 10:35 am #468470
John Moffat
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They are two separate things.
In the workings, tax is calculated as always on the after-tax profits.
When arriving at the free cash flow to equity we subtract the tax as one cash flow, and subtract the interest as another cash flow.
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