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...
What is the definition of free cash flow?It’s an effective tool for understanding how fast a company can grow and return value to shareholders. It also encompasses the Free Cash Flow to the Firm (FCFF), which represents the cash flows available both to shareholders and to creditors, and ...
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 ...
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. ...
Free Cash Flow (FCF)ValuationStatement of Cash FlowsMany financial analysts and investors believe that measures of cash flow are extremely useful when analyzing the financial health and prospects of a company. Indoi:http://dx.doi.org/Ehrhardt, Michael...
Free Cash Flow to Equity (redirected fromFree Cash Flows to Equity) Thecashthat a company has on hand after alldebt serviceandexpenseshave been paid andreinvestmenthas been made. The free cash flow to equity is calculated thusly: FCFE =Net income+ newly borroweddebt-capital expenditures- change...
What is the definition of free cash flow for the firm?The FCFF is a performance valuation metric that financial analysts use as abenchmarkto analyze a firm’s financial health. Once a company has paid the short-term and long-term obligations, including salaries, thecost of goods sold, R&D...
Free Cash FlowFree 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 ...
The meaning of CASH FLOW is a measure of an organization's liquidity that usually consists of net income after taxes plus noncash charges against income. How to use cash flow in a sentence.
Free cash flow. Free cash flow reveals the total amount of money available after a company has fulfilled its capital expenditures, dividend payments, and debt servicing obligations. Free cash can be spent on day-to-day operations, used for new business investments, or distributed to shareholders....