Yilmaz Ratio’s Numerator

Purpose: To answer the question “why did not Yilmaz use available free cash calculation methods instead of his own FCF calculation method?  Materials and Methods: Firstly, the 23 FCF calculation method were determined. Secondly, they were grouped as to the financial statements they used to calculate FCF. Thirdly, the items used to calculate the FCF were analyzed for the two groups of the FCF calculation methods. Findings: The all of FCF calculation methods are not suitable to be the numerator of Yilmaz ratio because of   their missing or excess items or the inconsistency of them with the Yilmaz ratio’s “denominator CFFO”. Unique Contribution to Theory, Practice and Policy: Yilmaz ratio should not be spl­­­it as the numerator and the nominator. It is a whole. The two is exactly necessary items. People should not think that the one of the two items could be changed with another scientist’ item or method.