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What is free cash flow mean in business finance?

Asked 3 years ago

What does free cash flow indicate, why is it important, and what is considered to be a good free cash flow?

Free cash flow Expenses Cash outflow

Gareth Browne

Thursday, November 11, 2021

Free Cash Flow (FCF) in definition is: the cash a company generates after taking into consideration cash outflows that support its operations and maintain its capital assets. In normal speak, FCF is the cash left over after a company pays off its operating costs, taxes, expenses and other things like capital expenses and such.

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