Apple Invested Capital vs Free Cash Flow Analysis

Invested Capital vs Free Cash Flow

Invested Capital

Invested capital represents the total cash investment that shareholders and debt holders have contributed to Apple Inc. There are two different methods for calculating Apple Inc invested capital: operating approach and financing approach. Understanding ##company1# invested capital allows investors to to calculate measures of performance such as return on invested capital or return on capital employed. Invested capital is an input into the calculation of Return on Invested Capital, and is calculated as: Total Debt plus Total Assets minus Goodwill and Intangible Assets minus Cash and Equivalents minus Current Liabilities. Please note this calculation method is subject to change.

Free Cash Flow

Free Cash Flow is a measure of financial performance calculated as Net Cash Flow from Operations minus Capital Expenditure.

Accounts Relationship

Invested Capital vs Free Cash Flow

Significance: Almost Identical Trend

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Apple Inc Invested Capital account and Free Cash Flow

Correlation Coefficient

0.92
Relationship DirectionPositive 
Relationship StrengthVery Strong