What is 'Free Cash Flow - FCF'?

Free cash flow (FCF) represents the cash that a company is able to generate after laying out the money required to maintain or expand its asset base.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Free Cash Flow - FCF Free cash flow (FCF) is a measure of a company's financial performance, calculated as operating cash flow minus capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base. FCF is important because it allows a company to pursue opportunities that enhance shareholder value. Breaking it Down: FCF is an assessment of the amount of cash a company generates after accounting for all capital expenditures, such as... Read More Related to "Free Cash Flow - FCF" Free Cash Flow Yield: The Best Fundamental Indicator Cash in the bank is what every company strives to achieve. Find out how to determine how much a company is generating and keeping. Read More Valuing Firms Using Present Value of Free Cash Flows When trying to evaluate a company, it always comes down to determining the value of the free cash flows and discounting them to today. Read More What is the difference between cash flow and free cash flow? Learn about the main differences between cash flow and free cash flow. In addition to the differences, learn how to calculate cash flow and free cash flow. . Read More Related Definitions Free Cash Flow-To-Sales Free cash flow-to-sales is a performance ratio that measures operating cash flows after deduction of capital expenditures relative to sales. Read More Cash Flow From Investing Activities When analyzing a company's cash flow statement, it is important to consider each of the various sections which contribute to the overall change in cash position. Read More Discounted Cash Flow (DCF) Discounted cash flow (DCF) is a valuation method used to estimate the attractiveness of an investment opportunity. Read More Trailing FCF Trailing free cash flow (FCF) measures the company's free cash flow for a prior period, usually the previous 12 months. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: