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Free Cash Flow (FCF)
Cash from operations minus capital expenditures; cash that can be used for buybacks, dividends, or debt.
Free Cash Flow (FCF)
FCF is the cash a business generates after maintaining or growing its asset base.
Why it matters
FCF is the fuel for:
- Reinvestment
- Debt repayment
- Dividends
- Share buybacks
Key Takeaways
- Compare metrics over multiple periods to identify trends.
- Always consider industry context when evaluating numbers.
- Combine with other metrics for a complete picture.
Quick Reference
Category
Financials
Difficulty
Intermediate
Reading Time
1 min
Related Terms
Financial Statements
Core reports that show profitability, balance sheet strength...
Income Statement
A report of revenue, expenses, and profit over a period (qua...
Balance Sheet
A snapshot of assets, liabilities, and equity at a point in...
Cash Flow Statement
Tracks cash generated and used by operations, investing, and...
Revenue
The total sales a company earns during a period.
Learn More
Where You'll See This
These appear in the Income Statement section on stock detail pages.