![]() ![]() Operating Cash Flow (OCF) is the cash that a company generates from its daily operations. The free cash flow formula is:įree Cash Flow = Operating Cash Flow - Capital Expenditures The formula to calculate free cash flow is relatively straightforward. It represents the amount of cash that a company has available for distribution to shareholders, for reinvesting in the business or for paying down debt.įree cash flow is an essential metric for investors as it shows the efficiency of a company to generate cash and the money it has available to reward its shareholders. What is Free Cash Flow?įree cash flow (FCF) is the cash generated by a company from its operations after deducting the capital expenditures required for its operations. In this article, we will explore what is free cash flow, its formula and how to calculate free cash flow. Free cash flow (FCF) is a specific type of cash flow that measures the amount of cash a company generates after accounting for capital expenditures and other investments. It represents the amount of cash that flows into and out of a business, and it is essential for the day-to-day operations and long-term growth of the business.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |