How to calculate Normalized Free Cash Flow (Forward Rate of Return (Yacktman) %)

Jakub Pasich Apr 7, 2024

Do anyone know how Gurufocus calculate Normalized Free Cash Flow in Forward Rate of Return (Yacktman) %?

Charlie Tian Apr 8, 2024

You can find the calculations of all the terms in GuruFocus term pages: https://www.gurufocus.com/term/RateOfReturn/MSFT/F...

Jakub Pasich Apr 8, 2024

They did not show which data and how they calculate it using https://www.gurufocus.com/stock/MSFT/financials......
to get Normalized Free Cash Flow = 7.144
https://www.gurufocus.com/term/RateOfReturn/MSFT/F...

Wanying_GuruFocus Apr 8, 2024

Normalized free cash flow is calculated as the average of the last 6 years of annual free cash flow per share (if reported annually or semiannually) or the annualized average of the last 21 quarters of free cash flow per share (if reported quarterly). Here, MSFT reports quarterly, so normalized free cash flow is calculated by first averaging free cash flow per share over 21 quarters, from December 2018 through December 2023, and then annualizing by multiplying by four.

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