Funds from Operations

What are Funds from Operations?

Funds from Operations represent the gross cash flow from a company’s operations, derived by reconciling net income before the effects of non-cash items. These are included in the Cash from Operating Activities.

How are Funds from Operations calculated?

Funds from Operations are the sum of:

• Net Income (Cash Flow);
• Depreciation & Amortization (Cash Flow);
• Deferred Taxes (Cash Flow); and
• Non-Cash Items.