Financial Glossary

Free Cash Flow (FCF)

Definition

Free Cash Flow (FCF) is the cash generated by a company�s operations after accounting for capital expenditures. It represents the money available to be reinvested or distributed to stakeholders.

Related Services

Financial analysis, investment advisory, and corporate finance services help businesses evaluate FCF to guide investment and strategic decisions.

Problem and Application

FCF is an important indicator of financial health, but it can be affected by capital expenditure choices and working capital fluctuations.

Conclusion

Free Cash Flow is a crucial metric for evaluating a company's ability to generate surplus capital for reinvestment, debt reduction, or dividends.