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What is free cash flows?

Management Dictionary
Accounting and editing, Corporate and Market Finance, Management Control

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Free Cash Flow (FCF), or free cash flow, is a key indicator of the “cash culture” and is closely monitored by company executives, investors, and other stakeholders.

It corresponds to the cash flows generated by a company from its core operations and that remain truly available after paying for the investments required to maintain or develop its activity, such as capital expenditures (CAPEX) and working capital requirements (WCR).

Free cash flow is therefore the amount of cash that can be reinvested in the company or used to remunerate investors.

It helps determine whether a company is generating a positive financial cash flow or not.

Links & resources

https://www.youtube.com/watch?v=xxQcdk2LvbA
https://www.youtube.com/watch?v=gl3OLtEX2PM
https://www.youtube.com/watch?v=ZHQhXedaPl4

Keywords

free cash flow

Author(s)

BESANGER Serge

Professeur

INSEEC-U

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