Owner Earnings
Buffett’s preferred cash-flow proxy — what shareholders could pull from the business after maintenance reinvestment.
Formula
OE = Net Income + D&A − Maintenance CapEx − ΔWorking Capital
Buffett Owner Earnings Calculator
Estimate the cash available to owners after maintenance reinvestment — Buffett’s preferred earnings proxy. Pick a ticker to auto-fill, or enter the four inputs in millions.
Inputs
Use D&A as a starting proxy.
Use the figure from the cash-flow statement.
Result
Owner Earnings iOwner Earnings (annual)Buffett’s preferred cash-flow proxy expressed in dollars per year.OE = Net Income + D&A − Maintenance CapEx − ΔWorking Capital
$0M
PositiveEnter inputs to compute
What this means. Business throws off cash to its owners after reinvestment.
NI + D&A$0M
Less maintenance CapEx−$0M
Less ΔWorking Capital−$0M
Reference
Term explanations
Every input and output on this page, explained in plain English. Hover the info icons in the calculator above to see the same content inline.
Owner Earnings (annual)
Buffett’s preferred cash-flow proxy expressed in dollars per year.
Formula
OE = Net Income + D&A − Maintenance CapEx − ΔWorking Capital
How to read the result
> 0
Positive5/5
Business throws off cash to its owners after reinvestment.
< 0
Negative1/5
Business consumes cash net of reinvestment — investigate why.
Free Cash Flow (FCF)
Operating cash flow minus capital expenditures.
Formula
FCF = OCF − CapEx
FAQ
Frequently asked questions
Warren Buffett’s 1986 letter to Berkshire shareholders introduced "owner earnings" as the cash a business generates net of the reinvestment required to maintain its competitive position.
Educational tool only. The outputs above are produced by a deterministic formula from the values you enter. They are not a recommendation to buy, hold, or sell any security and are not investment advice. Always do your own research and consider consulting a licensed advisor before making investment decisions.
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