Free Cash Flow (FCF)

Free Cash Flow (FCF) is a measure of a company's financial health, representing the cash generated by its operations after covering capital expenditures needed to maintain or expand its business. It indicates how much cash is available to shareholders, pay down debt, or invest. Essentially, FCF shows the company's ability to produce cash that can be used for growth, dividends, or other financial strategies, providing insight into its profitability and efficiency beyond just profit figures.