Kovai Medical Center and Hospital - Health and Wealth

IMO cash from from debt cannot be added to free cash flow to equity. Money raised from debt is never free to distribute and carries some charge over the assets.

Also consider, if this was true, any company with high debt will report positive cash flow to equity, even Suzlon, JPAss etc types.

I personally calculate free cash as Cash from operations, less (net) amount invested in fixed assets. One can reduce interest payments from this, if he wants.

I won’t reduce dividends as they are free cash and actually distributed.

If this free cash is positive, the company shows sustainable growth as it can fund its capex from internal business sources. I do not reduce interest payments from here, but I do check interest service ratios and debt levels before investing. A check on gross debt is also important. It should not rise much.