Free Cash Flow

Introduction to Free Cash Flow

The free cash flow (FCF) is a measure of a company's financial performance and health. It represents the cash that a company is able to generate after accounting for capital expenditures, such as the purchase of fixed assets or investments in new products. Free cash flow provides a crucial indicator of a company's ability to repay debt, pay dividends, and undertake growth opportunities.

Parameter usage:

• operatingCashFlow = operating cash flow of the company
• capitalExpenditure = capital expenditure of the company

Output:

• FCF = free cash flow of the company

Data validation

The operating cash flow and capital expenditure should be non-negative values.

Summary

This calculator takes into account the operating cash flow and capital expenditure of a company and computes its free cash flow, providing crucial financial insight.