The real difference between earnings and free cash flow is that depreciation accounts for sunk costs of the past; free cash flow is meant to capture all real cash outlays of the present. home | glossary | calculator | about us | books ...
Free cash flow (FCF) is a financial metric that includes cash flow generated from operations, minus annual capital expenditures required to sustain the business (maintenance capex). It is a key metric used by buyers to evaluate a business. Free cash flow is sometimes calculated on an after tax...
Definition:Free Cash Flow (FCF) is a financial performance calculation that measures how much operating cash flows exceed capital expenditures. In other words, it measures how much available money a company has left over to pay back debt, pay investors, or grow the business after all the operat...
Related to cash flow:Cash flow statement,Free cash flow cash flow n. 1.The pattern of income and expenditures, as of a company or person, and the resulting availability of cash:The city improved its cash flow by borrowing against future revenues. ...
Understand Free Cash Flow Definition and its importance in valuing a company with The Strategic CFO®.
Free cash flow (FCF) is the cash flow that is left over for distribution to the business' owners after all operating and capital expenditure cash needs are satisfied.There are two variants of free cash flow: the most common free cash flow to firm (FCFF) and the free cash flow to equity...
Understand Free Cash Flow Definition and its importance in valuing a company with The Strategic CFO®.
Generally, the lower the ratio, the less attractive a company is as an investment, because it means investors are putting money into the company but not receiving a very good return in exchange. A high free cash flow yield result means a company is generating enough cash to easily satisfy ...
Unlevered free cash flow is the money a company has left after it has made investments in its assets but before it’s paid interest for debt.
In particular, investors want to see positive cash flows even after payments have been made for capital expenditures (which is known as free cash flow). The time period over which cash flow is tracked is usually a standard reporting period, such as a month, quarter, or year. What Causes ...