free cash flow

Net income plus depreciation and amortization, less changes in working capital, less capital expenditure.

Free cash flow can be very negative for profitable, fast-growing businesses and very positive for unprofitable, declining ones.


Wikipedia foundation.

Look at other dictionaries:

  • free cash flow — Cash flow from operations minus capital expenditures and dividends. Cash flow from operations is reduced by those adjustments to generate a measure of cash available to meet other corporate purposes. While the above definition is commonly used by …   Financial and business terms

  • Free cash flow — In corporate finance, free cash flow (FCF) is a cash flow available for distribution among all the security holders of a company. They include equity holders, debt holders, preferred stock holders, convertibles holders, and so on.There are two… …   Wikipedia

  • free cash flow — A measure of the cash that a company is generating or consuming. Free cash flow is often defined as after tax operating profit less net capital expenditure: free cash flow = revenues – operating expenses + depreciation – taxes – capital… …   Accounting dictionary

  • free cash flow — A measure of the cash that a company is generating or consuming. Free cash flow is often defined as after tax operating profit less net capital expenditure: free cash flow = revenues operating expenses + depreciation taxes capital expenditure… …   Big dictionary of business and management

  • Free Cash-Flow — Der Cashflow [kæʃ fləʊ] (engl. für Geldfluss, Kassenzufluss) ist eine wirtschaftliche Messgröße, die den aus der Umsatztätigkeit und sonstigen laufenden Tätigkeiten erzielten Nettozufluss liquider Mittel während einer Periode darstellt. Die… …   Deutsch Wikipedia

  • Free Cash Flow — Der Cashflow [kæʃ fləʊ] (engl. für Geldfluss, Kassenzufluss) ist eine wirtschaftliche Messgröße, die den aus der Umsatztätigkeit und sonstigen laufenden Tätigkeiten erzielten Nettozufluss liquider Mittel während einer Periode darstellt. Die… …   Deutsch Wikipedia

  • free cash flow — Fin cash flow from operations after deducting interest, tax, dividends, and ongoing capital expenditure, but excluding capital expenditure associated with strategic acquisitions and/or disposals …   The ultimate business dictionary

  • Free Cash Flow - FCF — A measure of financial performance calculated as operating cash flow minus capital expenditures. 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 …   Investment dictionary

  • Free Cash Flow Yield — An overall return evaluation ratio of a stock, which standardizes the free cash flow per share a company is expected to earn against its market price per share. The ratio is calculated by taking the free cash flow per share divided by the share… …   Investment dictionary

  • Free Cash Flow To Sales — A ratio that illustrates the percentage of free cash flow to the amount of sales. The numerator is found by determining a company s free cash flow, which is available to debt and equity holders. The denominator is the company s annual sales. Free …   Investment dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.