FREECASHFLOW

Free cash flow

In corporate finance, free cash flow is a way of looking at a business's cash flow to see what is available for distribution among all the securities holders of a corporate entity. This may be useful to parties such as equity holders, debt holders, preferred stock holders, convertible security holders, and so on when they want to see how much cash can be extracted from a company without causing issues to its day to day operations.

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free cash flow

Noun

  1. Net income plus depreciation and amortization, less changes in working capital, less capital expenditure.
    Free cash flow can be very negative for profitable, fast-growing businesses and very positive for unprofitable, declining ones.


The above text is a snippet from Wiktionary: free cash flow
and as such is available under the Creative Commons Attribution/Share-Alike License.

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