What is Free Cashflow?
Free Cashflow The cash generated by a company after accounting for capital expenditures required to maintain or expand its asset base; represents cash available for debt repayment, dividends, or reinvestment.
Source: CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
How is “Free Cashflow” Used in Practice?
Positive free cashflow allows a company to reduce debt, pay dividends, or pursue new investment opportunities without external financing.
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Who Needs to Know This Term?
- Financial Analysts
- Bankers
- Traders
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What is Free Cashflow?
The cash generated by a company after accounting for capital expenditures required to maintain or expand its asset base; represents cash available for debt repayment, dividends, or reinvestment.
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