Final answer:
An alternate way to calculate Free Cash Flow is by subtracting CapEx from Operating Cash Flow.
Step-by-step explanation:
Free Cash Flow can also be calculated as Operating Cash Flow minus CapEx.
Operating Cash Flow represents the cash generated from a company's core operations, excluding non-operating items such as interest expense and taxes.
CapEx refers to capital expenditures, which represents the amount of money a company spends on acquiring or upgrading its long-term assets.
Using this alternate method to calculate Free Cash Flow ensures that only the actual cash flows related to the core operations of the business are considered, without the influence of financing and tax-related items.