Question

In 2014, GoPro spent \$27.5$27.5 million on capital expenditures, experienced an increase in net working capital (including cash) equal to \$239$239 million, and realized \$18$18 million in depreciation. What is GoPro's unlevered free cash flow for 2014?

Answer 1

The unlevered free cash flow is $248.50 million.

Explanation:

Given capital expenditures = $27.5 million

Working capital  = $239 million

Depreciation = $ 18 Million

EBIT (Earnings before interest and tax) = 0

Unlevered free cash flow  = EBIT  + depreciation - capital expenditure - Increase in Working capital

Unlevered free cash flow   = 0 + $18 million - $27,5 million - $ 239 million

Unlevered free cash flow   =   - $248.50 million

Learn More:

Explain the capital expenditure​

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