Free Cash Flow
What is Free Cash Flow?
Free Cash Flow (FCF) represents the cash that a company generates as a result of its activities, excluding expenses on assets. Free Cash Flow is sometimes considered the hardest financial metric to fake because of its calculation and for that reason, it’s a popular financial metric in the investor community.
Why is Free Cash Flow important?
Free Cash Flow signals a company's ability to pay debts and dividends, repurchase shares and contribute to business growth.