What is 'Free Cash Flow - FCF'?

Free cash flow represents cash a company can generate after accounting for capital expenditures needed to maintain or maximize its asset base. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day Free Cash Flow - FCF Free cash flow represents the cash a company can generate after required investment to maintain or expand its asset base. It is a measurement of a company's financial performance and health. There are two other types of free cash flow: free cash flow for the firm and free cash flow to equity. This article focuses on the more simplified free cash flow also known as levered free cash flow. Breaking it Down: Free cash flow is the cash flow available to all investors in a company, including... 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 » How are cash flow and free cash flow different? Both cash flow and free cash flow are financial metrics that measure a company's liquidity, but one shows how effectively the firm generates and uses cash. 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 Cash flow from investing activities reports the total change in a company's cash position from investment gains/losses and fixed asset investments. 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 » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy