Free cash flow
Also called: FCF
Cash from operating activities minus capital expenditure. The cash left for lenders and owners after keeping the business running.
Free cash flow is the cash a business generates that it does not need to reinvest in equipment and other long-lived assets. It can be used to repay debt, pay dividends, buy back shares or make acquisitions.
It varies a lot from year to year, so it is best judged over several years.
Example
Operating cash flow of ₹150 crore and capital expenditure of ₹120 crore leave free cash flow of ₹30 crore.
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