Free Cash Flow

Free Cash Flow (FCF) is the amount of money a company has left over after covering its essential expenses and making necessary investments in maintaining or growing its business. It represents the cash available to distribute to shareholders, pay down debt, or reinvest in the company. Essentially, FCF shows how much real cash a company generates from its operations, providing insight into its financial health and flexibility. It’s a key indicator for investors because it reflects the company's ability to fund new projects or return value to shareholders without relying on external financing.