Financial Statements
Free Cash Flow
Cash left after the company pays for operating needs and capital spending.
Also called: FCF
What it means
Free cash flow is often estimated as operating cash flow minus capital expenditures. It is meant to show how much cash may remain after the business funds the spending needed to maintain or grow operations.
Why it matters
Many investors view free cash flow as a key signal of business quality because it connects operations, reinvestment needs, and cash generation.