Back to Glossary
Financials
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