What is Free cashflow (FCF) and why it is important

Free cashflow represents the cash a company generates after necessary cash outflows. Basically this measures how much cash would the company generate if you start to handle it as cash cow.

This is how you calculate free cash flow (FCF). You take revenue from operations, subtract operating costs, taxes and necessary investments to maintain the business as it is now (mainly property, plans, but also other capital assets).

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